FOR MONDAY: (3/12) Stock market roared back to life with huge gains in employment and lessening fear about North Korea and tariffs. Minor cycles point lower for a few days so we’ll have to see what Tweet happens over the weekend to worry the markets. Still, larger optimism cycle into Tuesday may override everything. There’s a lot of crazy optimism out there and it may not go away. Given the way patterns look on NQ, have to assume you buy the S & P until NQ futures hit 7500. Not sure what to do with weak March seasonals but they seem ore likely to be a problem the last week of March for now and then often we get a pullback into tax filings.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (3/12) New highs on NQ usually means it will bring SP up with it, and the push above 2780 confirmed that the congestion pattern is over and they’re ready to go back to the moon! Resistance now at 2798 and 2803. Pullbacks should hold 2774 and 2764, and 2759 will have to come out to create a reversal. Current hourly patterns project 2885. We’ll throw out the congestion triangle pattern because of NQ and focus on buying 1-2 day dips. (Note we moved stops down to 2882.25 intraday and got hit as there was not point in selling a stair-step day.)
NEAR TERM: Computer models are projecting 2885. Our original cycle high was due for around June 1 and new highs on NQ confirm that SP will follow.
CYCLE SYNTHESIS: Retracing Monday and part of Tuesday; higher into Wednesday.
