FOR FRIDAY: (12/9) Europe is out of the way for the week but everyone is a bit beaten up and bruised already. We’re thinking the S & P will retrace for  a few sessions but it’s not a major short. Gold may recover a bit to the upside and the dollar will retrace absurd movement from Thursday. Let’s hope we can rest also after an exhausting week.

TRADING RECOMMENDATION: Wait for morning comments.

S&P ANALYSIS FOR FRIDAY (12/9) We’re rolling to March S & P, which is trading 5 under December. Dec. hit 2250 and has backed off. March should fall to at least 2230 or 2220 over the next few sessions for a larger 4th wave but the next push up would project 2275 on Dec and 2270 on March. The larger pattern completion is to 2300 on cash. Given the craziness of yesterday, it’s hard to get excited about swing shorts except for day traders. The last place for any bearish interpretation to happen would be a failure at 2250 and then taking out 2200 quickly and confirming a deeper break to 2100 into mid-Dec. That may not make sense given that stocks look higher Dec. 15-22 and once 2250 comes out, the bears will be in trouble.

OVERALL: (12/5) Daily charts starting to project 2300 and weekly charts 2330-2340. We have a bias for higher prices from FOMC into Dec. 22 and then lower into the end of the year and probably retracing into the Inauguration.

WEEKLY CHART: We do expect 2345 on cash next year for a new high. 2420 is not out of the question before this bull market ends and it takes a long time to turn a steam liner around in the ocean so V tops and crashes are not to be looked for and publications that steer you that direction are being too sensational.

CYCLES OVERVIEW: Lower Friday into Sunday.

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