FOR FRIDAY: (6/8) The G-7 meeting in Canada runs Friday and Saturday with fireworks expected, and we’ll see how markets are impacted. They may wait until Sunday to explode one way or the other. Hard to imagine Trump backing down but is that positive or negative for the dollar? We have currency rollovers and stock index rollers and FOMC on Wednesday so we’re more likely to get large range of congestion–and if there are counter-thrusts, we would expect them on Sunday night/Monday. Need to complete our June/July cycle work on Friday to see if cycles are confirming what patterns are implying.

SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (6/8): We’re rolling to the Sept. contract, which is trading 3.50 points above June. Our day-trade service went short and projected 2760 and stuck with a secondary position. The lower target of 2754 didn’t come out to trigger a major sell signal, and not sure we’ll get one on Friday although they often happen Monday before FOMC.

Market hit 2783.50 overnight on Wednesday, which is almost enough of a breakout to be open to 2802 or 2813.50. NQ is lagging but we’re still looking for 7289 and 7300 there. NQ performance was more problematic on Thursday. We also often note that a week before FOMC, the market can congest in a 35-50-point range, and often the biggest fall is the Monday before FOMC. With the G8 meeting in Toronto, we continue to think that fund managers won’t commit or take it higher.
CYCLE SYNTHESIS: Sideways June 8; lower June 11.

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