FOR THURSDAY: (11/1) Trade waiting on Friday’s employment report but we still may get first-of-the-month buying and bargain hunting. Cycles for stocks look firm into at least Monday with Tuesday lower in pre-election panic.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR THURSDAY: (11/1) We got our close above 2710 so it’s safe to go out until at least Monday. Market should get to at least 2786 if not 2800 quickly, and then a sharp fall before the election should develop. Our sense is that we’ll get a Republican surprise and the market will rally after the election. Market closed above 2710.50 floor support and that needs to hold overnight with cash support at 2700.55 and 2688 where we have gaps on the chart. We see nothing bearish about Thursday but could continue to consolidate recent gains. Inclined to think that Friday is higher.
CYCLES OVERVIEW: Higher into Nov. 5.