FOR TUESDAY: (5/22) Still should be an active day before it thins out before the holidays. Cycles are positive and we see a good chance for stocks to spurt. Willing to buy pullbacks on gold and silver for countertrend plays, and we like crude into Thursday if we can get a pullback.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (5/22) Market was strongly higher and had nowhere to go. At worst, probably a pullback to 2723.50 but still could see 2765.50 this week. Will look for a buy in the morning. What is promising is the fact that our fears for a retest of 2700 or lower to 2694 never manifested last Friday during the weakest day of the run. If the market can’t decisively take out 2641-2 Tuesday, the hopes for 2765-74 may be delayed or they just may drag out into early June as the trade gets ready for Memorial Day.
OVERALL: We’re not expecting any major fallout and a new high to 2779 or more is possible into June if the market behaves. Lately, seasonal trends have extended later in June rather than May, and often this occurs after the 2nd week of June.
CYCLE SYNTHESIS: Higher Tuesday; topping Wednesday; lower into Friday.