The stock market is open today (Veteran’s Day), but the bond market is closed for the day.

SPX futures reached an overnight high of 3990.10 as it potentially aims for the 61.8% retracement value at 4008.00. Yesterday was the culmination of a triple boost of trending strength as SPX completes its retracement rally. Today is day 260.00 of the Master Cycle and SPX will have achieved 21 days of the rally from the October 13 low today.

In today’s op-ex, Maximum Pain for options investors appears at 3925.00. The options market is hotly contested in both directions with long gamma starting at 3975 and short gamma at 3880.00.

ZeroHedge reports, “One day after its best day since April 2020, when the S&P500 added 5.5%, or a near-record $1.8 trillion in market cap in one day, a rare 4-sigma move that has only occurred 10 times over the past decade, which essentially showed how wrong-footed the market was ahead of the inflation surprise.…

… the index was set to extend its gains as a FOMO panic started to spread among traders fueled by a softer-than-expected US inflation print and as China reduced the number of time travelers and close contacts of virus cases must spend in quarantine, and pulled back on testing, in a significant calibration of the Covid Zero policy that has upended the world’s second-largest economy and raised public ire.

Contracts on the US stock benchmark advanced 0.3% to 3,974 at 730 a.m. in New York, having earlier risen as high as 3,997. Nasdaq 100 futures also gained 0.7%, while Treasury futures weakened, with the cash market closed for the Veteran’s Day holiday. Commodities also rallied while the dollar retreated for a second day.”

(Click on image to enlarge)

More By This Author: