FOR TUESDAY: (9/5) Not sure another hurricane heading for the US will be considered good for the economy but people feel all this money goes out of insurance funds and into buying replacement goods and it’s sometimes a boost for the economy. North Korea tensions are still there and we have to see how much these markets react when cash trading happens. Three day weekends are hard to trade but generally if the market is down into a 3-day weekend, it often will bounce out of there. If gold and silver hit key numbers overnight, they will be a sale for a week and SP should be a buy on dips for at least a few days. Hurricane Irma is the new wild card and brushing Puerto Rico isn’t going to be good for that bankrupt country and heading to Florida is no picnic.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (9/5) The market gapped below our entry at 2470.50 negating the trade. Still could see 2471 but the chances for new lows to 2457.50 are down to 34%. The lower target of 2454.50 or 2450 could still come in overnight or early on Tuesday. Not in a rush to bottom pick on Tuesday and we have seen so many sucker punches that it’s hard to do a last short but it’s tempting. NQ put in a minimum target of 5959 with 5941 and 5929 possible and could be key sign-posts.
OVERALL: Five waves up projects 2494 for a new high. NQ has broken to new highs so the hopes for getting 2405 are pretty much gone and we started seeing that a few days ago.
WEEKLY CHART: There’s still a good possibility that based on patterns that a new high to 2500-2520 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: Lower into Tuesday; recovering into Thursday.
