FOR TUESDAY: (6/5) We’re open to staying short another day but not expecting that much more if you’re still short. Expecting that above-normal temperatures for June will start short-covering soon and may keep the market up for a bit from oversold conditions. Still, charts look terrible and the chances for new highs will really depend on whether dry comes with hot; our forecast has been for above normal rains this year.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (6/5) Ideal pattern completions at 998 and 995.75 and 992.75. We would expect short-covering from there rather than a push to 975. We may consider a light buy on Tuesday or Wednesday in case the next hot weather scare causes any major short-covering.
CYCLES OVERVIEW: Lower into Tuesday; higher Wednesday.
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