FOR THURSDAY: (9/21) We have the Jewish New Year holiday on Thursday and that may create sluggish trade for stocks and bonds. We’re still wondering if the FOMC statement was a game changer. We are clear on weaker gold to 1275-1280 next and that could push the dollar above 9300 and issue a stronger weekly chart buy signal. Gold projecting 1200 into Christmas suggests that a dollar bottom is close and that a secondary high into early November may need to be bought. Stocks are too close to major resistance and NQ is really tiring but new highs are coming but a spill on Sunday/Monday looks likely. Meanwhile, pour out your pocketbooks to the troubled areas of the world with Puerto Rico and Mexico being ignored much too much—as if we’re jaded after Irma and Harvey.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR THURSDAY: (9/21) S & P failed to take out key support at 2494 and squeezed and put in a double-top. NQ was weaker and recovered less. Resistance still at 2508 and 2510 but not sure it will happen, and we’re still open to 2486-7 as a more ideal buy point. With the Jewish New Year, trading could be even lighter than it has been. Stocks may be higher on Friday with Sunday/Monday being lower. Unclear how to trade on Thursday. If 2410 comes out overnight, then our quest for 2486 will be gone. In the past, the Asian trade and European trade have taken a strong close higher on stocks.
OVERALL: Pullbacks into October may only go to 2405 and then the next push up would go to 2580. Not going to top-pick this market.
CYCLES OVERVIEW: Sideways Thursday; generally higher into Sept. 22; lower Sunday/Monday.
