FOR TUESDAY: (10/3) Employment report week often has a wide-range day on Monday and then a lot of complicated congestion patterns. While the SP cash has completed a minimum weekly chart pattern, short-term patterns still point higher this week and our monthly letter projects 2657 into 2018. We usually like the dust to settle on Monday but it is first of the month fund buying and also October seasonal buying for stocks, and they continue to be greedy despite larger and deeper technicals that are suggesting tiring.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for opening comments.
S & P ANALYSIS FOR TUESDAY: (10/3). Patterns suggest hitting 2527 and then falling 10 points and holding 2517. Additional support is at 2514.70. Next push up from there should go to at least 2535 if not 2545 by the end of the week. Hard to get away with sales on this market. Tuesday into early Wednesday may be the best chance for a pullback.
NEAR TERM: Thinking that the market will start coming off the week of Oct. 9-13 and be in trouble until about Nov. 6. I suspect we will have to wait until the last minute for the Employment report on Oct. 6 and watch pattern completions. Running out of time to get to 2547 and we’ll have to see where we are by Oct. 6 and then lighten up on portfolios after that point. The honeymoon can quickly end with saber-rattling increasing with North Korea. The weeks of Oct. 8-20 are the ones that look more like the market will be in trouble.
CYCLES OVERVIEW: Lower Tuesday; secondary high by Oct. 6.
