Midday Update: 2023-01-06

Messy with a whiplash move in the morning, but equities pull through with the bounce

The chart that I have been leaning in the last several days is this daily chart of VXX, an ETN of VIX short-term futures. The cycle here is what I’m keying on, that it is due for a cycle low next week, and thus open to a pop up in equities. I admit, my patience has been tested, and I almost gave up on the possibility. I’m on red alert for a lower high being set next week in the equity indices and a trending move down that persists for the rest of the month.

Cycle working its magic so far

In SPX, the primary path sprang to life today but with a nerve-wracking whiplash move on the open first. I expect a bit higher early next week though we could be closing in on a third wave high here late in the day. Might get some continuation early next week and a consolidation later on Monday-Tuesday.

Up in c of (ii)

Have a good weekend. The following weeks should be exciting one way or another.