FOR TUESDAY: (9/26) Stocks still potentially lower on Tuesday but the funds will come in and swoop up bargains for new highs yet. Heart-broken about the world tragedy and current state and the inability for us to help Puerto Rico. Please donate generously. 3.5 million people have been impacted, lacking very basic needs.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (9/26) Our exit targets came in on short S & P for 7-9 points profits. We’re still open to lower action on Tuesday but don’t expect a huge push down, as the market is coated with Teflon and the lows don’t stick. Shouldn’t make new lows. If the market is holding well, it would be a buy going into Wednesday. The N. Korea mess is a big negative and isn’t going to go away quickly. Major support at 2479.50.
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 2486 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: Lower Tuesday; higher into Wednesday.
