FOR TUESDAY: (6/12) The Trump meeting is 9 am Singapore time so we will get the drift of it tonight in the evening news. The bigger events are a Brexit vote on Tuesday and waiting for FOMC on Wednesday, but probably ECB on Thursday will have the most impact on the week. We do expect that a divergent high on stocks should finally lead to something bigger with a cycle low for stocks into Monday.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR TUESDAY: (6/12) We were wrong on Monday even though we were right being short over the weekend for a trade meeting meltdown. On Monday, the market stubbornly held up and stopped us out of our first position for an ugly 19-point loss but the new position survived by 2 ticks. We’re not hopeful here, as the push above 2790 could lead to a divergent high to 2802-5 and 2813.50 seems likely. Therefore, we should get out overnight. Tight ranges overnight could be between 2793 and 2786.50. Will the market celebrate Kim and Trump or will Trump storm out after an hour if he doesn’t get his way? Cycles are friendlier for Tuesday than they were on Monday but surprises are definitely on the horizon. The ideal pattern would still need a 29-point pullback.
CYCLE SYNTHESIS: Congesting and topping Tuesday/Wednesday; lower into Monday.
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