FOR WEDNESDAY: (8/23) Trade waiting on Jackson Hole on Thursday and it’s still the dog days of summer. Are cycles inverting with stocks higher and that will pull the dollar up and push T-notes and gold lower? Not enough information today to confirm that but logic is suggesting as much.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (8/23) We didn’t get an intraday pullback to 2430, as 2450 and then some came in quickly. 2459-60 is resistance now and patterns suggest a rally to 2463.25 and then a 15-tick pullback to 2448. We had thought that 2477 would be next on this move and computer models now suggest 2485-6. We’re open to 2520 into September. Our original monthly chart research had suggested a low on Monday and a recovery from there.
OVERALL: Market hit the abc completion in the 2415 region.
WEEKLY CHART: There’s still a good possibility that based on patterns that the current fall is a 4th wave and that a new high to 2500-2520 would be possible in September but a secondary high to 2477 is more likely. In the end we still max. 2300-2320 as a fall correction target with a multi-year high due into 2018. Market needs to hold 2400 into Monday and shoot out of there to open up that scenario. World violence cycles are strong the next few weeks and it won’t take much to unsettle this tired market.
CYCLES OVERVIEW: Higher Wednesday; lower Thursday; higher Friday.
