Market Analysis - Friday, Dec. 5
SPX futures reached a morning high at 6877.30, within the target range announced earlier this week. Should the fractal high imitate its predecessors, it may be complete this morning. A decline beneath 6810.00 instigates an aggressive sell signal. The Sell signal may be confirmed beneath Intermediate support at 6774.80 with further confirmation beneath the 52-day Moving Average at 6740.98. The possibility of a Key Reversal arises with a new high today followed by a decline bneath 6827.00.
VIX futures declined to 15.55 this morning, setting up a high probability mid-Cycle reversal from a low point near 15.00. There is a “shadow Cycle” which appears to target today or early next week. Fractals are self-similar, pointing to a possible outcome similar to the March 22 to April 7 spike. The Cycles Model anticipates a spike in VIX that may be larger than the one this spring.
The December 10 options chain shows Max Pain at 17.00. Short gamma has narrowed down to 15.00 – 16.00. Long gamma now begins at 18.00 and is well populated to 29.00.
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