FOR FRIDAY: (4/6) Too much volatility and too many surprises lately have us not in the mood to outguess the market for Friday. Thursday should have been down but it wasn’t, and does that mean a delayed impact on Friday? The sucker punch has changed the momentum. We do see lower gold and higher dollars so we have to assume the more bullish pattern for stocks.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (4/6) Fives waves up projects 2710. Support at 2648 and 2640 on a bad report reaction. Hard to play. We know the rally was on thin volume and meaningless but it does need to get more overbought to set up new shorts. Cycles point lower so we would rather bet on shorts, and that might be from a retest of 2671. Still no place to put a stop, with resistance at 2675 and 2680 and 2702. Given last week’s volatility, larger stops are required for swing trades and day trades to be realistic with slippage.
CYCLE SYNTHESIS: Lower Friday.
