FOR MONDAY: (8/20) Cycles are volatile on Sunday/Monday and we could get some wild geo-political news, and it has been happening already. Patterns for stocks look a bit higher and if there’s no wild news, the market tends to find a way to go up on Mondays. Tuesday looks more vulnerable for stocks. Two key trend changes for many markets over the weekend and so by late Monday, we should have reversals in place from last week, with metals looking lower from weekend highs into Wednesday and the dollar recovering next week. Oil looks higher until the Aug. 27, and stocks should do another leg lower next week but can’t rule out first running wild to the upside on Sunday or early Monday.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR MONDAY (8/20) Stocks couldn’t take out first support at 2835 and did what they do best—go up. The close above 2850 is friendly and possible that 2865 could be in over the weekend if there are no political blow-ups. Extended target is up to 258. Inclined to expect a high on Monday if that’s the case and then a pullback into Friday, although 80% of the time the Monday cycle is down so we’ll watch patterns. With summer volume, there’s often not much movement. Market is going to have to take out 2825-27 to issue a stronger sell signal. A 61-point C-wave can develop next week but we’re going to need so geopolitical news to get it going.
CYCLE SYNTHESIS: Higher into Sunday; topping on Monday; lower Tuesday and probably Wednesday; possibly lower into Aug. 24.
