SPX futures attempted a new high by briefly reaching 4795.30 but fell back to a flat position. The cash market high has been 4793.30 thus far. The rally formation is complete, or nearly so. Today may remain flat on weak volume as the book for 2023 is closed for many. The rising trendline and the 1987 trendline bot reside at 4750.00. An aggressive sell signal lies beneath them. The Cycle Top resides at 4732.30 which may confirm the sell signal.

Today’s options chain shows 4780.00 is hotly contested and offers the Max Pain. Long gamma starts at 4800.00 while short gamma may begin at 4775.00.

ZeroHedge reports,

“US futures once again flirted between gains and losses on the last trading day of the year, but with the all time high in the S&P just 0.3% away, it is virtually guaranteed that the script calls for a new record to close out 2023 because that’s how centrally-planned markets work. And who knows, maybe this time BIden’s approval rating will actually increase; after all that’s what all of this is about.”

VIX futures consolidated inside yesterday’s trading range, without the energy to break up or down. However, it has completed its first positive hourly Cycle since the Master low on December 13. The new Master Cycle may extend to mid-January with an upward bias.

Wednesday’s options chain shows Max Pain at 13.50. An 11,000 call contract at 11.00 negates the potential short gamma. Long gamma otherwise begins at 16.00 and extends to 30.00.

More By This Author:

NDX Futures: Relentless March
NDX Futures Rose
NDX Futures Consolidating