FOR FRIDAY: (7/13) Retaliation from China over the weekend could keep the market on edge so the trade may be reluctant to push too much higher. We’ve had a lot of surprises by China announced over the weekend in past weekends. Cycles look positive in the morning but to be concerned about weekend profit-taking. In an ideal world, we would love for the S & P to reach up quickly to 2820. Trade waiting on Tuesday’s Powell testimony, and it appears it won’t go well, as many markets turn after it.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR FRIDAY: (7/13) Cycles are powerful to the upside so we’re still looking at 2819.50-2820 into early next week with less than a 10% chance for 2758. Want to see a more definitive breakout above 2805 but NQ still has room for a buy.
WEEKLY CHART: Measurements on the weekly chart project 2913 to get 5 waves up from the 2016 low at 1805. Monthly charts project 3250 but we’re not quite ready to go there. August looks more bearish but this market could gallop suddenly so avoid shorts.
CYCLE SYNTHESIS: Generally higher into July 18.
