SPX futures remained beneath the 52-day Moving Average at 6716.00 in the overnight market, but remained flat near 6700.00.  Should the rally continue, the 50% retracement value is 6721.00 while the 61.8 Fibonacci retracement is at 6768.00.  SPX stopped at a Cyclical pivot point (18.5 market days and 25.8 calendar days) and has the potential to decline from here.  A sell signal lies at 6650.00.  The Cycles Model suggests the market may remain relatively calm this week, with volatility spiking again in early December.  Should the SPX decline beneath its Neckline at 6521.92, the decline may gain momentum with the 1987 trendline getting serious attention.

Today’s options chain shows Max Pain at 6700.00.  Long gamma may begin at 6735.00 while short gamma rules beneath 6650.00.
 

VIX futures made a morning low at 19.95 and is hovering near the low.  The mid-Cycle support at 19.91 may act as a pivot point for the VIX.  The strongest portion of the rally may be imminent, with the April 7 high as a potential target.  Trending strength appears during the first week of December.

Tomorrow;s options chain shows VIX puts dominate from 15.00 to 19.00, whil calls gain strength above 20.00.
 

TNX continues its decline and may continue to do so for approximately three more weeks.  The Cycle bottom at 39.57 is in immediate view but TNX is capable of a throw-under.  The popular opinion is that the declining rates are due to potential Fed cuts on December 10.  They may have it backward.  Declining rates may be due to a weakening of flows into equities with a serious rotation into treasuries as equities sell off.   The Fed, which has always been behind the 8-ball, may be obliged to cut rates after-the-fact.
 

USD futures are testing the 200-day Moving Average at 99.73 in preparation of the final probe toward the Cycle Top at 103.00.  Dollar shorts are about to be battered as the move may only take a week or so.

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