FOR MONDAY: (7/16) Weekends have been treacherous around China announcements so we are more on the sidelines. By Tuesday, we have Powell testimony and think that we’ll get reversals on most markets until at least July 25 so metals should short-cover, dollars should be lower with crude higher and stocks lower. Monday is a transition day so we’ll be patient.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR MONDAY: (7/16) We have come in too many Sunday nights to sharp down moves from China but the tariff team keeps spinning optimistic banter to keep the market up and optimistic. Cycles look positive for Sunday/Monday and we could see the pattern completion come in, and there’s no point to top-pick. Powell’s testimony should be the lynch pin. Cycles are powerful to the upside so we’re still looking at 2819.50-2820 into early next week, with less than a 20% chance for taking out 2785 right away.
CYCLE SYNTHESIS: Generally higher into July 18
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