FOR TUESDAY: (11/14) Not a lot of reports on Tuesday. Stock market remains top heavy and is waiting for something to pull it down, probably on Wednesday.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (11/14) A 3-wave rally could go as high at 2591.25 but we’re skeptical. Tuesday is probably a transition day with Wednesday looking lower. Market could turn sideways, as a risk-taking cycle kicks and may already create a pre-Thanksgiving malaise. Trade may wait on a plethora of reports on Wednesday with not much happening on Tuesday. First resistance is still at 2587.
OVERALL: The market did generate a negative weekly chart close and a first Hindenburg signal so we’re right about topping action here but not willing to risk on the weekend or an up day on Friday. We did keep shorts on using our ETF Timer. We’ve seen so many sucker-punches in futures that we’re just going to be patient. We have been sucker-punched many times over the last year and 2617-18 never came in on the cash and we need 2550 to come out to celebrate for the bears and even then we are looking at 2485. We are seeing at least a 110-point fall to 2485. It does look like a Christmas recovery will happen the week of Dec. 11-15 and possibly into the Dec. 22.
CYCLES OVERVIEW: Topping Tuesday; lower into Wednesday and into Friday.
