FOR MONDAY: (7/9) Lately, we get Chinese surprises over the weekend and if retaliatory efforts are worse than expected, the market could tank sharply on Sunday. Cycles suggest as much for Sunday/Monday. We have a number of turns due over the weekend or at the latest into Tuesday/Wednesday for financials so will see what develops.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (7/9) The breakout on the S & P isn’t a huge surprise, as we had the market up on Friday, but the push above 2757 could lead to 2780 if the market doesn’t get any really bad news. If the market is really strong, breaks would only go to 2752.50 and 2745.50, and then 2780 could come in later in the week. The 2738 region has to come out quickly over the next few days for the bears to take control. Without any follow through, we could see cycles invert and take the market higher into Thursday instead of lower. We have seen stocks go higher into mid-July a number of times seasonally due to the 365-day cycles. Daily stochastics are turning up and we can’t ignore technicals and will need another major news event to get this market beared-up. Not totally willing to throw out 2650 but the close above 2757 is rather helpful for the moment.
CYCLE SYNTHESIS: Lower Sunday/Monday and possibly into Tuesday.
Comments are closed.