FOR WEDNESDAY: (5/9) Cycles are volatile for Wednesday so we don’t sense an easy trade for crude or stocks but they may stabilize later in the week. The press is confused about the terms of pulling out of the Iran deal and they are rather complicated but Iran still wants to negotiate with the other partners in the deal, and it will take months to put sanctions on again and a new deal could happen by then. In the end, the Israel and the Military Industrial complex want war and we have to admit that the billions of dollars from the deal that support a regime that hates us and terrorizes the Middle East isn’t a good investment. You have to dig really deep to understand all the issues here.
JUNE E-MINI S & P 500
S & P ANALYSIS FOR WEDNESDAY: (5/9) The slippage on this market is now about 5 points and the market took out a key number by about that much and then vaulted back up and still looks like it will go to 2707. Cycles are more bearish on Wednesday and we won’t chase the market but if 2650 holds, then probably still is a chance for 2701-07 by Friday. If 2750 comes out, support is at 2646 and 2636.
OVERALL: Cycles are positive and five waves up would project at least 2701-2707, and on Friday we have an extended projection to 2734.
CYCLE SYNTHESIS: Lower into May 9; higher into May 11.
