FOR TUESDAY: (10/31) End of the month profit-taking may give us a chance to buy from better levels. We do have a sense that the market may have trouble going up much this week. Employment report and FOMC week can be choppy and there are always surprises so we have to trade lightly.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR WEDNESDAY: (10/31) First support is at 2563 with major support at 2553.75. Cycles are positive on Tuesday and we do have end of the month profit-taking coming in. Key daily chart trendline support comes in at 2553.50 and we can’t see the S & P taking out 2548 and given the way this market works, we have to buy this dip.
OVERALL: Market looks lower into Thanksgiving and if that major target of 2600 does come in it may set up a 300-point correction finally. But until then, it should be business as usual. There is a sense that volatility is going to increase and having wide swings in a choppy range would make sense.
LONGER-TERM: Cycles are intense in the world but the market continues to ignore them. At best if we are to get a pullback to 2320, it may come from 2600 and it may take more time to manifest with December being vulnerable with the budget deficit.
CYCLES OVERVIEW: Lower part of Tuesday; volatile Wednesday; higher Thursday