FOR FRIDAY: (8/17 no change) Expecting stocks to recover the next few days while metals should find a temporary floor and do a dead-cat bounce. While stocks have issued a stronger sell-signal, we can probably only count on another 61 S & P points lower from wherever the market stalls into Sunday or Monday. There’s a sense that with Turkey, the other shoe could drop and set off a major crisis but not clear on the timing and need to research much of September, which tends to be bearish for stocks anyway.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY (8/17) Market never got close to our very conservative buy point. The move above 2848 was probably enough to trigger the stronger buy signal. Support at 2835 and 2830. Upper resistance is at 2870 and 2884. Doubt that the market will take off on a Friday before the weekend break filled with uncertainties. Sunday looks higher but Monday looks vulnerable if new Turkish unraveling or Chinese disappointments happen. The best of the cycle is probably into the first few hours of trading on Friday but any good news could propel it.
CYCLE SYNTHESIS: Higher into Sunday.
