SPX futures made a morning low of 5603.40 thus far.  Should it go lower, the 50-day Moving Average lies at 5594.34.  Beneath it lies a sell signal.  The Cycles Model anticipates a decline to mid-June. Third Waves may never be the smallest of the series of motive Waves.  Assuming a third Wave is next, the minimum target may be 4388.00 while the average target may be closer to 3550.00.  Underneath the hood, the NYSE Hi-Lo Index closed at a marginal 34.00 on Friday, then closed at its low of 26,00 on Monday, at the tipping edge of its range. The mean value of the Hi-Lo is -30.00, so a reversion to the mean may plunge the Hi-Lo well into negative territory.

Today’s options chain shows Max Pain at 5655.00.  Long gamma may begin at 5660.00 while sort gamma starts at 5650.00. This morning’s plunge has tested a sizable put wall at 5600.00.

VIX futures rose to a morning high of 25.04, still short of the 50-day Moving Average at 25.98. On a 25-year look-back, the mean value for the VIX appears to be near 18.67. Note that last week’s low was above that value for the first time since April 2020.

Tomorrow’s options chain shows Max Pain at 24.00. Short gamma resides between 20.00 and 23.00. Long gamma may begin above 25.00 and extends to 40.00.

USD futures remain in a corrective decline to a probable target near 98.90 with a possible extension to the Cycle Bottom at 98.38. Once met, trending strength may reappear by the end of the week.  The Cycles Model anticipates the USD rising to mid-June.

TNX may have begun consolidating  after a sharp rise from its Master Cycle low. While a correction (pullback) to the 50-day Moving Average at 42.80 may be in order, the uptick may not be over. An expanded correction may push TNX to 44.00 or higher before the correction is complete.

Bitcoin continues to decline from its Master Cycle high mad last Friday. Confirmation of a sell signal lies beneath the mid-Cycle support/resistance at 93204.84. The new Master Cycle may decline to mid-June.

The Japanese Yen made a new high this morning at 70.13 after making its Master Cycle low last Thursday. The New Master Cycle promises to rise above its Cycle Top at 71.09 and the neckline of the Head & Shoulders formation at 71.55. Should that occur, We may witness the source of a huge liquidity drain in the equities markets accompanied by higher rates in the bond market.

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