FOR WEDNESDAY: (8/1) Another FOMC day. Our cycle works points to a negative reaction for stocks but always a gamble as there are often surprises. Gold and silver may make divergent lows and set up buys and T-notes look higher into Friday even if we get a spike low first. One more new low on stocks Wednesday, might set up a 3 wave bounce on Thursday from oversold conditions.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR WEDNESDAY: (8/1) S & P went more than the minimum bounce target of 2821. Futures patterns look like it could go straight down to 2781. Cash has congestive action between 2806 and 2830 and then a push to 2730. Safest play would be a light sale with a tight stop at 2830-1. We expect a negative reaction to FOMC and August has seasonally been a difficult month for stocks lately.
CYCLE SYNTHESIS: Lower into Wednesday; short-covering Thursday; volatile Friday.