FOR TUESDAY: (6/25) Cycle lows for stocks dominate into at least Wednesday, and end-of- the-month unraveling may not help into the end of the week if anyone is left before a 1-week 4th of July holiday. We should still be able to safely sell stocks on Tuesday and Wednesday, and the verdict is out on gold, the dollar and oil, as Monday’s action wasn’t definitive.
SEPT. E-MINI S & P 500
S & P ANALYSIS FOR TUESDAY: (6/25) Should see a push lower to at least 2685-7 with overnight action not likely to take 2732.75 and 2742. Lately the market seems to fall in the evening if the US session is lower. Hourly chart patterns point to 2663 on cash, which would put futures at 2668. Daily chart patterns point to 2729 on cash. We have a bias for lower action into at least Wednesday or Thursday. Action finally getting impulsive enough to get beared-up about but closing under 2700 may incite some minor unraveling.
CYCLE SYNTHESIS: Generally lower into Wednesday; sideways short-covering into Thursday/ Friday.
