FOR MONDAY: (12/12) Lately Mondays have been sluggish and that should be the case again before FOMC on Wednesday. Hard to take new positions but seems like we can play 1-2 day pullbacks if we get them. Assuming the trend will continue with stocks higher into at least Dec. 22-23.
MARCH E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S&P ANALYSIS FOR MONDAY (12/12) Bull markets don’t let one in easily. Lately Mondays have been congestive. The 29-day cycle is friendly so may just get to 2271. At best we might see a 1-2 day pullback to 2240.50 or 2241. Market could hit 2271, which had been the upper target, before pulling back. Market is a scalpers sale near 2171 but otherwise still in buy mode and we may get 2240 if we’re lucky the next few days.
OVERALL: While we favor the pattern that suggests 2300 and 2340 into next year, the last hopes for a decent buying pullback would come from 2255 and allow a congestive pullback a month toward 2150 into the Inauguration. That is almost off the table. Because the market looks higher into Dec. 22 after a few-day pullback, that isn’t our preferred pattern.
NEAR TERM: (12/5) Daily charts starting to project 2300 and weekly charts 2330-2340. We have a bias for higher prices from FOMC into Dec. 22 and then lower into the end of the year and probably retracing into the Inauguration.
WEEKLY CHART: We do expect 2345 on cash next year for a new high. 2420 is not out of the question before this bull market ends and it takes a long time to turn a steam liner around in the ocean so V tops and crashes are not to be looked for and publications that steer you that direction are being too sensational.
CYCLES OVERVIEW: Sideways to lower Monday.
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