FOR MONDAY (5/7) San Francisco Fed’s John Williams says “comfortable overshooting 2% inflation for a while” and stocks are green for the week and the biggest short squeeze since Brexit hits the market. We had a low due by Monday but thought the market might be down all day. Next week looks friendly for stocks and much friendlier than the following week. Crude is now looking higher for at least two more weeks and rallies on T-notes should be sold on Monday.
JUNE E-MINI S & P 500
S & P ANALYSIS FOR MONDAY: (5/7) We still can’t get used to the wild average range for stocks every day and the volatility and sudden reversals. Resistance up to 2683 with support for buying at 2656 and 2647 with the best buy close to 2640, which seems miles away. We have a bias for higher prices for Monday and Tuesday but the market should be off on Wednesday. This is the best week for a rally, as May 14-18 looks lower. Hourly chart projects 2734 now. We’re fine buying if we can find a risk/reward.
CYCLE SYNTHESIS: Higher Monday/Tuesday; lower into May 9; higher into May 11.
