FOR MONDAY: (11/27) Thin holiday trading can be exaggerated. Expecting topping action on S & P by Monday, as cycles turn negative later into the week. Dollar move not a panic sell unless it closes below 9295. Will have to confirm cycle highs on the dollar for Dec. 10. Gold cycles are weak this week.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (11/27) We knew that 2600 would come out easily. Projection first is to 2609.75 with parabolic support at 2596.75 not likely to come out easily. For now the market still is up into Monday with resistance at 2612 and key resistance at 2617 on cash. We looked at next week and it could take until Dec. 1-3 to get cash up to 2617 so if we get no downside follow-through starting Tuesday, market will be congestive mode. Patterns seem clear.
OVERALL: Expecting topping action by Monday, as cycles turn negative later into the week into Dec. 1st. 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: Topping Monday; lower into Thursday; higher Friday.