FOR MONDAY: (10/15) Lows held and we have to buy dips on pullbacks by early Monday for stocks in case we get a rubber-band reaction. Always have to worry about weekend craziness but cycles aren’t that negative, and the market should pull out of a tailspin by Sunday night and start a nice rally. We’ve seen people get too beared up too quickly, including last Feb., and look for some kind of recovery, with more dire cycles kicking in the week Oct. 22 if we’re too see another leg lower.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (10/15): Is it done? Many signs that it is and also on NQ. While we would like to see a few more divergent lows, not sure it will happen. From a pattern perspective, we would like to see two more new lows that are minor and divergent to 2703 and 2693. But they don’t have to come in and the last cycle low is Sunday night, and it would take a lot to manifest a deep fall. With the market deeply oversold and due for a bounce next week, selling becomes more precarious, and yesterday’s yo-yo action was difficult to sit through even if you got in and held on at various points. We should focus on a surprise bounce next week.
CYCLES OVERVIEW: Bottoming into Sunday; higher Monday/Tuesday; lower Wednesday.
