FOR WEDNESDAY: (6/28) Cycles are very volatile the next few days and could produce V-top and bottom reversals with strong movement and you can get a glimpse of how energized the markets were from Tuesday and hit will continue a few more days so be careful. We do think that the markets will retrace Tuesday’s movements so stocks should come back to life and probably in a big way. Dollar is due for a bounce and gold and silver look lower a few days now and probably into Sunday.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S&P ANALYSIS FOR WEDNESDAY: (6/28) While we knew not to be long today, we had hoped that 2428 would hold on the S & P but action late is now pulling the market to key support at 2412.50 with a break of 2409 leading to 2401. NQ hit a key level at 5669 but if 5655 comes out we may see 5594 and it would pull the S & P lower.
The cycles for the next few days could create a V-bottom as if 2409-12 does come in, we could see the market recover dramatically the next few days and still reach 2460 next week. The larger pattern had suggested dramatic movement between 2409-2460 and then eventually a push up to 2520. As always watch NQ as a break below 5500 there might temporarily signal the end to this enormous run.
OVERALL: We ran cycles through August and they are mixed. We are not thinking that the market will fall apart dramatically in July, but we doubt that there’s enough time and room for 2520 to come in this summer before things get complicated August-October. The market does seem like it will hold up into July 5, retrace into mid-July and probably hold up into July 25. Seeing lots of congestive action and it may not fall apart until after August 5.
CYCLES OVERVIEW: Recovering June 28-29; lower into June 30; higher into July 5.
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