FOR MONDAY: (10/29) The cycles around terrorism and explosions for the US are still strong into Tuesday and we wonder how spooked the market will be by the Pittsburgh incident. Too hard to take a position on a last short on Sunday but we’re still looking for lower levels and pattern completions but running out of time for it to fall apart before a 2-week rally in stocks. Dollar should peak on Monday and congest and we have to get out of silver, as it looks vulnerable this week along with gold. Will give crude a few more days to fall apart.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (10/29) We’re open to one more new low on Monday morning with 2575 on futures and 2586 on cash very key but 2604 on cash would be enough. The additional new low doesn’t have to happen but the pattern would look more complete. Floor resistance is at 2663, and that will be the natural magnet in the morning. Cash closed at 2658, and that will also be important in the morning. Our target zone of 2633 came in within a few points so it may be done. With the market up the next few weeks and the worst of the bearish cycles over, we are seeing a 2-week bounce, which is not logical before the election. Given how wrong the media has been with their rigged polls, who knows what we will get. First bounce target for cash is 2698 and then 2720 short term but a 62% retracement on cash would go to 2817-20 and could eventually happen in congestion.
CYCLES OVERVIEW: Bottoming Sunday and part of Monday and recovering; retracing Tuesday; higher into Oct. 31 and Nov. 5.