FOR FRIDAY: (10/12) Could see 1-2 more new lows before a bounce early next week. No rush to buy until early Monday and we wouldn’t buy unless 2693 on the S & P is holding. Everything stretched a bit much for now.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (10/12) Our stop was too tight in this volatile market and we missed out on the sharp fall but there doesn’t seem that much left. Divergent low to 2703 would do it and extended to 2693 has to hold. We’re thinking that the market will reverse by sometime Friday or Monday and we’ll get a rubber-band bounce that could go up to 2800 or 2820. A new low is possible to 2653 but we’re skeptical.
CYCLES OVERVIEW: Bottoming into Friday/Sunday; higher Monday/Tuesday; lower Wednesday.