FOR WEDNESDAY: (9/13) We continue to see lower gold and higher dollars into Wednesday and that should mean lower T-notes and higher stocks. Still, stocks look like they could run out of steam near 2500. Our prayers continue to go out to the new flood victims in Jacksonville, FL and in South Carolina. Continue to dig deep into your pocketbook and support those in need.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR WEDNESDAY: (9/13) Market didn’t pull back. The bullish pattern would suggest holding 2490.50 overnight and taking off to 2516. The more bearish pattern, which we favor would create a fall to 2485 or max. 2479.50 on Wednesday. We need to continue to watch NQ which projects 6035. It seems a no-brainer that 2500 will turn the market away. Wednesday is the best day of the week for a fall but the Plunge Protection team seems clear and taking this market up. World stock indices are at new highs so the rule is not to be selling.
OVERALL: Pullbacks into October may only go to 2405 now and then the next push up would to 2580. Not going to top-pick this market.
FUNDAMENTALS: We’re not sure what to do with our Hurricane Andrew comparison as the damage is not as widespread this time but no one knows so far. In the end hurricanes are good for the economy but horrible short-term. The big thing is that the hurricane, N. Korea and the budget deficit are less of an immediate threat and Apple is getting ready to roll out a new I-Phone operating system, Apple X, and in the age of gadgets, what matters more?
WEEKLY CHART: There’s still a good possibility that based on patterns that a new high to -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: Topping/retracing Wednesday.
