FOR TUESDAY: (10/10) Reversals in the dollar and metals remind us that we have to be alert for something on the S & P but it may not be Tuesday because upside pattern was not completed there to 2562 and NQ isn’t done either. That means long stocks today and watching for pattern completions. As noted below, a 30-point pullback on the S & P is all that we can count on this week but open to surprises given that gold needs to go to 1325 and silver to 1770 and oil is up this week. Still waiting for the apocalypse with North Korea and hopefully God has better plans that will cause less suffering.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for opening comments.
S & P ANALYSIS FOR TUESDAY: (10/10) We have learned to be patient with this market and do not top-pick but we’re running out of time and fear cycles will increase as the week goes on. Patterns, technicals and cycles are a bit at odds. Upside patterns to 2562 are very much needed to complete 5 waves up from the Sept. 25 low but that may not be the end of the sequence from the August low. All we can count on this week is a 30-point pullback and we’ll need much more to start a larger correction.
Without a break of 2538, there’s no reason to expect this market to fall apart. We remain concerned about fear cycles increasing and North Korea and the market could easily fall at some point later in the week if news algos seem dire but for now we have to trade off of patterns and the trend.
Possible to get a max of a pullback to 2540.50 for a retest of Friday’s low but NQ is strong today and our projections from Friday night and continued weekly chart closes above 6000 are now creating more upside potential.
NEAR TERM: Thinking that the market will start coming off once 2562 comes and be in trouble until about Nov. 6. I suspect we’ll have to wait until the last minute for sales.
