FOR MONDAY: (7/2) We’re dealing with first-of-the-month fund buying but also have to deal with thin holiday conditions all week, although Europe and Asia won’t be as thin. The week of employment report can have a huge range on Monday and then be followed by congestion, and it usually makes for quicker and shorter trades. Given the holidays, we may be trading very thinly unless there is something very clear.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR MONDAY: (7/2) We had suggested considering shorts in the 2743-48 region on our day trade service and in our ETF Timer at the 2745 region for equivalent sales. First of the month is always tricky and does tend to be a buy day. Cycles point lower and lately we get China trade wars on the weekend so once 2710 comes out, we have a shot for a deep pullback. Most cycles point lower early in the week but then higher on Thursday but it may not mean much. We still favor wing lows into July 10-12.
CYCLE SYNTHESIS: Lower Monday and bleeding into Tuesday; closed Wednesday; higher Thursday/Friday; lower into July 8-12.
