FOR FRIDAY: (11/10) Still not a lot of news but tensions in the Middle East will make taking positions home harder. Stocks fell enough to confirm a temporary top but not confirmed on a closing basis, as the computers bought it back into the close. We do see a number of shifts over the weekend and hope that weekend war news doesn’t create any surprises.

DEC. E-MINI S & P 500
S & P ANALYSIS FOR FRIDAY: (11/10) We have seen so many sucker punch recoveries that we have to tread lightly but think there is a good chance for lower action on Friday and then we can decide what to do by Sunday in our weekend report.

We had ear-marketed the end of the week as having a good chance to fall but had gotten complacent in not wanting to top-pick or put on positions overnight on Wednesday. Cycle are suggesting weaker action into Friday but so much happens overnight that we have to assume that the Japanese market will take another fall and pull the US down overnight. The 78% retracement is up to 2487.75. We have to get something on as the break on Thursday was the start of at least the 110-point fall.

We can’t rule out a divergent high to 2600-2605 next week but know we can be short on Friday and see what develops. We still would rather sell the ideal cash completion at 2617-8.


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