SPX futures dipped down to 6893.70 in the overnight session thus far.  Currently it is near 6900.00.    Round number 6900.00 is the first support level, then Intermediate support at 6821.00 offers the first sell signal followed by the 52-day Moving Average at 6813.00.  SPX has been stuck at the range highs since October.  Despite making spike highs yesterday, both the DJIA and NDX gave back all the gains by the end of the day.  This coordinated move does not bode well for equities.

Today’s options chain shows Max Pain at 6930.00.  Long gamma may begin above 6950.00 while short gamma resides beneath 6900.00.

ZeroHedge reports, “US futures are lower as New Year optimism gives way to jitters about the economy and geopolitics with attention turning to tomorrow’s NFP report. Traders are also trying to make sense of Trump’s latest edicts on defense and corporate landlords, with a vortex of headlines making things feel more unpredictable than usual.”
 

VIX futures broke out above the trendline at 15.20 to a morning high at 15.81, giving its first buy signal of the year.  Further confirmation lies above the 52-day Moving Average at 17.25.  VIX appears to be powering up and the Cycles Model infers trending strength may be on the rise with possible upside panics starting next week.  While VIX has emerged from the basement, downside risk may be low.  Meanwhile any stumble at the SPX range high may spark a strong reaction.  The first target may be the April 7 high at 60.13.  The second target may be the August 5, 2024 high at 65.73.  That may be amended higher as the new Master Cycle grows legs.

The January 14 options chain shows Max Pain at 16.00.  Dealers hold the majority of puts beneath that, with high concentration at 15.00.  There is a growing number of calls above 19.00, but the conviction isn’t there, yet.
 

TNX bounced from Intermediate support at 41.27 in the overnight session.  The month-long wind-up under the Head & Shoulders neckline may be ready to be sprung in a breakout towards the Cycle Top at 46.34.

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