FOR FRIDAY: (2/16) Cycles look positive but we may have everyone heading early for the exits for a much-needed holiday. Assuming profit-taking will set in by 9 am on trending situations, which means gold and silver coming off and short-covering for the dollar. Best entries may be Monday during the holiday for new longs on metals and shorts on the dollar.
MARCH E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (2/16) The close above 2727 means we won’t get much of a pullback, if any. Cycles are strong the next few trading days and not thinking there are too many major scares out there to keep the trade from buying before the long weekend. We assume that the 78% retracement up to 2802 will come in. We have a cycle high into Monday and a pullback for 2-3 days next week. Basically, we are in sucker-punch mode where the late bears may get punched out if they are not careful. In the end the chances of seeing a 78% retracement up to 2802 could happen by Monday if the trade is open to pre-holiday and holiday buying on Monday in Europe and Asia.
CYCLE SYNTHESIS: Higher into Friday; topping into Monday.
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