FOR TUESDAY (5/8) The Iran decision is due at 2 pm Eastern Time. The surprise would be to go for it rather than upset the apple cart, and crude has been pricing in the return to sanctions. Stocks still seem higher on Tuesday and patterns suggest the need for at least 2701-05 on the S & P.

S & P ANALYSIS FOR TUESDAY: (5/8) S & P took all day to get up to the 2682 region and should now pull back to the 2658-62 region. Cycles are positive and five waves up would project at least 2701-2705, and Friday we have an extended projection to 2734. We’re ok putting in orders overnight. We have a bias for higher prices for Tuesday but the market should be off on Wednesday. This is the best week for a rally, as May 14-18 looks lower. Hourly chart projects 2734 now. We’re fine buying if we can find a risk/reward.
CYCLE SYNTHESIS: Higher Tuesday; lower into May 9; higher into May 11.

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