FOR TUESDAY: (2/6) Panic cycles can alter everything so we have to trade off of pattern. We can’t jump on the media’s panic energy or discussion of record DOW point falls, and of course we have to look at the percentage fall–and today’s fall was nothing like Oct. 1987. The Dow is only 30 stocks and we have stopped covering it for that reason. Still, we’re open for something deeper into Friday or maybe a bit longer but Tuesday may be the best day of the week for a bounce. Foreign overnight panic momentum can always feed this market so their markets are more likely to lay big eggs overnight.

S & P ANALYSIS FOR TUESDAY: (2/6) Computer models at the close point to support at 2584 with a bounce target of 2651 and 2688. Daily and weekly chart key targets now come in at 2520 and 2500. We should note that monthly chart parabolic support is at 2569, and it will take a monthly chart close below there for us to re-evaluate. Lower weekly chart support is all the way to 2290 if 2500 comes out. Timing suggests pressure until at least Feb. 9 but these big moves are often followed by huge congestive triangles, and the chance of a 78% bounce happening at some point. We’re more open to a bounce on Tuesday than any other day of the week and so hard to chase this market. Bounces on Tuesday suggest 2652 and 2689.

CYCLE SYNTHESIS: Lower into Feb. 9.

FOR MONDAY: (2/5) The Circus should continue next week with the budget ceiling pending and we can’t imagine that the Dems will be cooperative given the anger that the memo is likely to drudge up. Expect another government shutdown and maybe it will last longer into Feb. 15. The latest proposal is another month of “can-kicking.” May get a delayed reaction from Asia on Sunday to the US meltdown and the political crisis here, and we have to think that even though key support at 2740 may lead to a dead-cat bounce, it won’t be anything final.Continue reading

FOR FRIDAY: (2/2) Employment report and the Republican secret memo end another volatile week. Cycles are still a bit edgy around government, and expect all kinds of attacks and counterattacks over the weekend, which makes us wonder if politics is about the people or who can get the next punch in. In the meantime the news networks on both sides make up stories to increase ratings and the world sees us a circus. Likely to get worse the next few days.Continue reading

FOR THURSDAY: (2/1) Hoping for a pause on Thursday. We’re completing new cycle research and have found a key cycle into Sunday that will impact the dollar negatively and it’s supportive for stocks and crude oil.Continue reading

FOR WEDNESDAY: (1/31) Huge cycles the next few days and we have State of the Union, FOMC and the Congressional memo bombshell due to be released within in a few days. Market has already been crazily volatile but we expect that to increase. We should get recoveries, and the promises for infrastructure development for the US should get things going. The fall on NQ wasn’t as pronounced as S & P, and it should’ve been more with the I-Phone X forecasts and that seems to be a bright spot.

S & P ANALYSIS FOR WEDNESDAY: (1/31) Our day-trade hotline made decent money selling in the 2840/38 region this morning. The chance for a recovery with the State of the Union tonight is likely, as it’s close to major support at 2820 and will easily go back to 2840 parabolic resistance. Cycles are volatile for Wednesday but we favor upward action into Friday. For weeks we had looked for a 70-point correction matching the August 2017 one and it’s just about in, but technically and we can’t rule out 2810 on futures or 2809 on cash before the market takes off again. We’re not favoring the larger 130-point correction on cash at this time, and ideally we would like to see one more new high. We cannot get beared-up, as we have seen for months what happens to the bears. Not willing to watch all night so we’ll see what develops in the morning.
CYCLE SYNTHESIS: Volatile but higher into Jan. 31; generally higher into Friday.