FOR THURSDAY/FRIDAY: (11/24) Thin holiday trading can be exaggerated and we’re only interested in buying T-notes if we can get in tonight. Dollar move not a panic sell unless it closes below 9295. Will have to confirm cycle highs on the dollar for Dec. 10.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (11/24) Support at 2591.75. Major resistance at 2607 and 2612.50. We’re still open to 2617 on cash into early next week. S & P going to have to take out 2583 to look ugly. Usually the market is up over the holidays but no one is around trading and we will leave it alone.
OVERALL: The market did generate a negative weekly chart close and a first Hindenburg signal so we’re right about topping action here but it will always go a bit more than expected and these 4th-wave fake-outs are frustrating. The divergent high to 2607 may come and maybe cash will get up to 2617. We’re seeing at least a 110-point fall to 2485. Lower target is possible to 2400-2385. It does look like a Christmas recovery will happen the week of Dec. 11-15 and possibly into the Dec. 22.
CYCLES OVERVIEW: Sideways to higher Thursday; pulling back Friday; higher Monday.
