Market Analysis - Monday, Feb. 10
SPX futures rose to 6056.30 over the weekend in a corrective bounce on day 263 of the Master Cycle. It is likely that the Cycle Top was put in on Friday, day 260. I have repositioned the Master Cycle high to Friday, although the his was made on January 24. The SPX simply went sideways, refusing to go down for the past two weeks, closing above the 50-day Moving Average at 5999.63. Hedge funds are finally back as buyers instead of sellers, having thrown in the towel on their short positions. No one sees the danger of a sharp and lengthy sell-off at this time.
Today’s options chain shows Max Pain at 6050.00. Long gamma strengthens at 6100.00 while short gamma prevails beneath 6000.0.
VIX futures are consolidating just above the 50-day Moving Average at 16.16. A buy signal may be imminent. The VIX “floor” is rising, giving a subtle clue of increasing strength.
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