FOR FRIDAY: (5/18) Traders aren’t taking too much home for the weekend lately so end-of- the-week position squaring may hit for stocks and crude. Trend and fundamentals remain strong for crude, and our target for crude continues to be 7900 this summer. S &P not likely to fall dramatically, and chances are it will be a buy on Sunday night.

S & P ANALYSIS FOR FRIDAY: (5/18) Our buy from this morning worked well, as the market quickly shot up to 2730, and while we didn’t give you a profit objective, we assume you cashed in. (Five minutes after a missed trade could have yield you 2716 or so). After the market closed, China is agreeing to a $200 billion trade deficit reduction and hoping that helps the market in the night session. At best, we may get a double-top in the 2731-2 region if the market can quickly take out 2721.
CYCLE SYNTHESIS: Retracing Friday; higher Monday/Tuesday.

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