FOR THURSDAY: (7/26) The EU caved to Trump’s demands and produced another leg up. Now we have ECB and GDP, and the market is often vulnerable a week before FOMC so hard to press longs. Facebook is tanking after hours, pulling NQ sharply lower, and it will spill into the broader market so a top may be in. Have to get short on recovery highs for stocks.

SEPT. E-MINI S & P 500
S & P ANALYSIS FOR THURSDAY: (7/26) S & P exploded on the Trump/EU news and hit our pattern completion at 2846 on cash and our upper futures resistance area. The more extended target of 2870 on cash seems unlikely but this market is on steroids and you don’t 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. It could suggest 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.
CYCLE SYNTHESIS: Lower into Friday and into July 31.

Comments are closed.