FOR TUESDAY: (10/9) We’ll have to see how post-holiday energy settles but stocks are oversold and should continue to bounce and maybe even for a week. Gold issued a clear sell signal and the dollar still looks higher; crude needs to go to 7190.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (10/9) We took all our profits off. Stocks held key support at 2864 on cash and 2866-7 on futures and had a strong close. Market should quickly go to 2915 and 2927 is possible. We have pointed out that patterns could suggest that this was just a 4th-wave pullback and a new high to 2992 is possible. Given the international context and messes out there, probably not our favorite scenario but we’ve warned about waiting for a secondary high this week. It wouldn’t be impossible that a rally could even go until Oct 15-17. Will have to see the impact of the international scene. We’re open to buying on Tuesday and seeing what develops.
CYCLES OVERVIEW: Higher Tuesday into Wednesday; sideways Thursday.