FOR FRIDAY: (2/2) Employment report and the Republican secret memo end another volatile week. Cycles are still a bit edgy around government, and expect all kinds of attacks and counterattacks over the weekend, which makes us wonder if politics is about the people or who can get the next punch in. In the meantime the news networks on both sides make up stories to increase ratings and the world sees us a circus. Likely to get worse the next few days.
MARCH E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (2/2) Sometimes you have to buy key numbers and just risk a little bit of money, and that was the case with 2810 which we had talked about the last few days. Three waves up projects 2840.50 and much above 2843 and we’ll see 2855 or 2864.
While we suspect that a recovery to 2855 or 2864 will come, the trade is waiting on employment report and Washington scandals, but then again they’re nothing new. The memo is due to come out on Friday now and so much is leaked that will it really mean anything?
NEAR TERM: The 70-point correction matching the August fall had been expected and we were starting to give up on it but there’s nothing terminal about recent action. Even a 130-point correction wouldn’t negate the chances for new highs so there’s no reason to expect the end of the bull market—just a refreshing pause.
CYCLE SYNTHESIS: Generally higher into Friday; lower into Feb. 9.