FOR THURSDAY: (5/17): We had a reversal due for currencies for Wednesday, and it may have come in with Italy getting their act together. Still, a fall in the dollar may not be more than 2-3 more days and not be very much. S & P still looks higher into next week with Thursday higher. Gold may retrace overdone conditions now.

TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR THURSDAY: (5/17) S & P rallied enough on Wednesday that new highs are probably more likely than a meltdown. Resistance at 2740 and support at 2715.75 and 2713. We’ll favor longs on Thursday. Friday is more vulnerable to fall but Monday looks higher. Market hit 2700.50 on Tuesday and we had key support at 2699. Additional support at 2694 and 2673.50.
OVERALL: Three waves up from the 2550 area would project 2769 ideally. Possible it could happen by May 22. Lately, the seasonals have turned later lower in June rather than May and often this is after the 2nd week of June.
CYCLE SYNTHESIS: Recovering into Thursday; retracing Friday; higher Monday/Tuesday.

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