ZeroHedge comments, “When markets open for trading today, the S&P will rise above 2,800 and the Dow Jones will not only make a new record high (those have become a bit of a boring daily occurrence lately) it will do so in historic fashion with just 12 days needed to move from 25,000 to 26,000, the fastest 1,000 point move in history, nearly twice as fast as the previous record when it took just 23 days for the DJIA to move from 24,000 to 25,000. And yes, get ready for the imminent (self-)congratulatory tweet from Donald Trump...”

The reversal may be even faster than ;the rally.

NDX futures have also reached round number resistance at 6800.00 as it reached its second Fibonacci target of 6795.00 over the extended weekend.

VIX futures are rising even faster than the SPX this morning. VIX is currently above the 50-day Moving Average at 10.27 and may threaten mid-Cycle resistance at 10.62. This may be considered an aggressive buy signal.

We will not know the status of the NYSE Hi-Lo Index until after the open.

TNX futures are declining to challenge the Cycle Top support at 25.28. We may consider it on a sell signal once beneath that support.

ZeroHedge observes, “In its latest reminder that China is a (for now) happy holder of some $1.2 trillion in US Treasurys, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing "deficiencies in US political ecology" and tax cuts that "directly reduce the federal government's sources of debt repayment" weakening the base of the government's debt repayment.”

USD futures appears to have reached the Cycle Bottom at 90.05 yesterday and is currently on a bounce. This bounce may last until the weekend, but may only rise to Intermediate-term resistance at 92.74. The Wave structure is as yet unfinished and may extend to or beyond its target at 88.20.

Regards,

Tony

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