FOR MONDAY: (8/21) The total Solar eclipse is on Monday. They are dangerous to watch even with protective glasses so be safe. They can create eerie feelings so markets could be particularly wild if any wild news hits. We can only go with patterns analysis and watch key breakdown figures. Many world events will be triggered as a result of eclipses. Expect high volatility next week even if Monday is quiet for some reason because fund managers are still at the beach.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (8/21) Stocks recovered to key resistance at 2339.50 but then sold off into the close. Market could easily do a divergent low to 2415 to complete. If there is really bad news over the weekend, the market could fall to 2405 or lower. We originally had a cycle low into Monday. We will not bottom-pick. Breaking 2405 would lead to 2393 and taking out 2389 could lead to a freefall to 2320. That has been our October target but anything wild can happen. If you want to bet on the short side into Monday, you have to consider sophisticated option strategies and ETFs
WEEKLY CHART: There’s still a good possibility that based on patterns that the current fall is a 4th wave and that a new high to 2500-2520 would be possible in September. In the end we still see only 2300-2320 as a fall correction target with a multi-year high due into 2018. Market needs to hold 2400 into Monday and shoot out of there to open up that scenario. World violence cycles are strong the next few weeks and it won’t take much to unsettle this tired market.
CYCLES OVERVIEW: Lower into Monday; recovering Tuesday into Wednesday; lower Thursday; higher Friday.
