FOR WEDNESDAY: (9/27) Stocks should be higher on Wednesday but we wonder who really wants to run this market up with N. Korea tensions increasing. Dollar looks higher another day and gold lower and crude higher into Thursday.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR WEDNESDAY: (9/27) Three waves down overnight projects 2490.50. Willing to be a buyer overnight on dips. Day traders did well selling the 2500 region but the market didn’t go low enough to pick up a good risk/reward for new shorts so we may have to chase. Monday’ fall was enough to satisfy the minor pattern completion that was needed before two more highs are to come. The larger cycle into Wednesday/Thursday has been supportive in the past for important cycle highs, and it will be a strong force. Swing traders need to accumulate on dips based on patterns and cycles.
NEAR TERM: There is a larger cycle that will continue to hold this market up into Wednesday/Thursday and so any shorts have to scramble quickly. We may day trade the short-side depending on night conditions.
OVERALL: As long as 2485 holds, the market needs two more new highs to complete the latest pattern into October before a break. We had thought at least 2519 would come in.
Pullbacks into October may only go to 2405 and then the next push up would go to 2580. Not going to top-pick this market.
CYCLES OVERVIEW: Higher into Wednesday.
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