FOR FRIDAY: (9/8) Buy the rumor, sell the fact. Thinking that if stocks sell off into the weekend and gold is also higher and the dollar lower, then whatever happens over the weekend will have nowhere to go and the markets will rebound. Cycles turn a bit more depressing and pessimistic the next few days and that may lead to more major selling of stocks. Open to panic selling coming the next few days unless the Plunge Protection team can absorb it.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR FRIDAY: (9/8) Not much to show for our early short last night. While it did hold 2455, it really needs to take out 2453 to get a move on it. Resistance up to 2472.25 and much above our stop and we might see 2480.50. Still more inclined to expect 2450 and 2444 into Friday.
OVERALL: The chances of a fall to 2406 are much stronger. Computer models suggest at least a push to 2448.50. If 2438 comes out, it would confirm the “C” wave fall to 2400-5 that we had given up but is starting to make more sense.
WEEKLY CHART: Septembers are usually not too kind for the stock market but if they get the budget crisis fixed early, it would seem that better prices are possible. Still, we’ll favor a move to 2400-2405 and then see if it can come back. There’s still a good possibility that based on patterns that a new high to 2500-2520 would be possible in September. In the end we still will have a minimum fall to 2360 or max. 2300-2320 as a fall correction target into early November with a multi-year high due into 2018.
CYCLES OVERVIEW: Lower Friday.
