Market Analysis - Friday, May 23


SPX futures made a brief foray to a low at 5819.60 around 6:00 pm yesterday, but recovered.  The Fractal path allows the SPX allows a further decline  this morning, then a possible bounce to a target near 5900.00 this afternoon, setting up for the next downdraft. An alternate view allows the decline to resume today with no bounce.

The NYSE Hi0Lo index made a modest high on Tuesday, May 20 at 159.00.  Yesterday it closed at -30.00, its lowest in a month.  The internals have gone negative.  Normally the Memorial Day week is the high point of the Spring positive seasonality.  However, the Cycles Model suggests that record may be broken as the peak may have come a week early.

Today’s options chain shows short gamma at all levels beneath 5900.00.


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