FOR THURSDAY: (5/24) The trade is leaving for the holidays and we rarely do well holiday trading or post-holiday trading. Usually the day after a holiday is filled with head fakes and double head fakes, and the wise trader waits for the noise to settle down to play. Moreover, we’re moving into the end of the month next week. We are lightening up on trading and with our travel schedule, we will have few reports until Tuesday but will cover key news events if we see something you should be aware.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR THURSDAY: (5/24) Market was down so much by Wednesday morning that it had no place to go but to rebound. The bullish patterns suggest resistance at 2735.50 overnight and pullbacks holding 2723.25. If the friendly pattern is in play, we would see 2755.
Cycles aren’t as supportive for a break above 2742 so we actually favor seeing 2700 and 2692 and 2680 into Friday.
Taking out 2680 on a closing basis would suddenly start negating 2765, and there is enough time to do so. Sometimes as the market thins out, not much happens so it’s possible that 2700 could come in and be followed by sickly congestion. Still, we favor sales more the next 2-3 days but market is suddenly very oversold on back-peddling on China talks. Various opposing Tweets from Trump vs. his Finance Secretary may create erratic jerks like we’ve seen the past few weeks.
CYCLE SYNTHESIS: Lower into Friday; sideways Monday; volatile Tuesday; lower on higher into Thursday; congesting and lower into Friday.
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