FOR MONDAY: (11/19) The week before Thanksgiving is usually frustrating for traders. By late Monday, traders are disappearing and markets stay in useless ranges with pattern waiting to be completed. Dips on stocks will be bought for a Thanksgiving rally only to give it back early next week. Metals and crude look higher this week even if we have a Monday/Tuesday pullback here. T-notes could hold up an extra week but minimum target is close.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (11/19) If you held onto any shorts, you would have been stopped out close to breakeven. The S & P failed to close above 2750, and usually the cluster of cycles that we had on Friday would create a turn for the market. Not totally clear, as we found another cycle that could push the market up on Sunday into early Monday so 2774 is possible. We do sense profit-taking setting into late Monday and Tuesday but it doesn’t have to be that dramatic a pullback. This year seasonals may be correct with a recovery into Friday from Tuesday’s low.
CYCLES OVERVIEW: Topping Sunday/early Monday; lower into Tuesday; higher into Friday; lower into Nov. 25-27.
