FOR FRIDAY: (10/13) Stock market is tiring and there are a number of larger cycle changes happening starting Friday and into the coming weeks that may give this market pause to go much higher. We’re not into top-picking stocks but will be alert. Not sure people want to go home long again before North Korea red letter day on Oct. 18. We found a bunch of minor cycle inversions and end of the week profit-taking may set in for sideways congestion anyway.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR FRIDAY: (10/13) Market looks like it is doing a distribution top but needs to take out 2538 to have a minor breakdown. Tight ranges continue to point toward this market tiring and it might not make the upper numbers for an ideal sale. We don’t like cycles on Friday and you have to stay open for a news flash that might finally lead to a break of 2540. We need to repeat yesterday’s technicals. Cycle tensions are mounting but may not break the camel’s back until next week. Resistance up to 2554-55. We could see sickly upward energy that continues to push toward 2560-2 if no trigger comes out. Until 2538 comes out, we’re just waiting. The most bullish pattern would allow at 20-point congestion triangle to happen between 2540-2560 and then new highs. A 30-point break is also very possible but waiting for much more may be too much.
Watch NQ 6122 for a pattern completion and there is money to be made on the upside there for the brave.
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.
CYCLES OVERVIEW: Sideways to lower Friday; lower Sunday.
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