FOR FRIDAY: (9/29) Position squaring by funds and others at the end of the month should dominate. Trade is often gun shy in taking a position, especially with N. Korea in the background. Market should be getting ready of first of month stock buying on Monday but we are very close to key stock market high.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR FRIDAY: (9/29) We took partial profits off in the 2505 area and current projection is to 2512 overnight before the market goes sideways before the weekend break. Not thinking that anything will happen but harder to take stuff home over the weekend. We’ll probably have to rebuy Sunday night/ Monday with first the month buying likely to come in and lift the market up to 2519-22 early next week. Cycles for the US are complicated and we have to be particularly alert for surprise the next week and they seem to be occurring rather regularly. Thinking that 2512 will get taken out on Monday if the geo-political climate seems clear.
NEAR TERM: Looking at next week, the October top could come in as soon as Monday with Oct. 6 being a secondary high. The weeks of Oct. 8-20 are the ones that look more like the market will be in trouble.
OVERALL: As long as 2487 holds, the market needs two more new highs to complete the latest pattern into October before a break. We had thought at least 2520 would come in with now an upper target to 2525. Pullbacks into October may only go to 2405 and then the next push up would go to 2580. Not going to top-pick this market.
CYCLES OVERVIEW: Lower Friday; higher Monday; lower Tuesday; secondary high by Oct. 6.
