FOR WEDNESDAY: (6/6) We’re expecting short-covering on Wednesday but Thursday and Friday could be lower, and patterns to the downside don’t look complete. 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. The outlook the next few weeks is not supporting hot and dry yet.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (6/6) Ideal pattern completion came in at 998.50. Slightly lower to 995.50 is very possible. Not in a rush to buy. Market going to need to take out 1020 to issue a buy signal. Have to leave it alone. May be a buy on Wednesday in case there’s an unexpected spurt that may be countertrend without a shift in the weather. Lower support at 992.75.
CYCLES OVERVIEW: Higher Wednesday; lower Thursday.
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