FOR FRIDAY: (7/27) GDP is a big deal on Friday, as some estimates are for 5.2% based on recent stats. Will the market think overheating or get exciting? This market is on steroids so we have to be cautious.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR FRIDAY: (7/27) Market failed to reverse on Thursday and as long as it stays below 2850, it’s just congesting before GDP. If we get a really bullish reaction to GDP, then 2873 will come in. We’re ok holding shorts overnight. The more extended target of 2870 on cash seems unlikely but this market is on steroids and the rule is not to sell a market in new high territory, which is the case for NQ. We do see a minimum pattern completion off of the June 28 low for both SP and NQ so we can top-pick secondary highs based on that, and the tendency to come off before the FOMC meeting. Patterns are suggesting a 121-point cash pullback to 2731 now before one more new high could come. There is reason to get short from a cycle and pattern completion basis. Still, if GDP on Friday comes out stellar, the market might go to the moon if they ignore a higher interest rate reaction or GDP isn’t as strong as some think at 5.2%.
CYCLE SYNTHESIS: Lower into Friday and into July 31.
