FOR MONDAY: (7/10) Could be an explosive Sunday with a key cycles hitting. Could trigger earthquake activity or just fall-out from G-20 as not sure Trump will hold his tongue well with Merkel and others by the time the weekend is over. Still, stock market setting up another sucker punch to the upside but maybe not too much.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S&P ANALYSIS FOR MONDAY: (7/10) Intraday we suggested 2427 and missed it by a few points and our day-trade hotline suggested 2412-2424. Doubt that we’ll get 2402 now based on NQ patterns and Mondays have been sluggish. Sunday night could be down hard if there’s any weird news over the weekend but so often they will ignore it and buy it up. Looked at cycles for the rest of the week and not as great as we thought in our monthly letter. Monday/Tuesday may offer the best chances for upward movement and if it’s not stellar, they may give it back later in the week. As always, NQ is key but had a stellar day and will hit at least 5691 with some higher projections possible. The FAAGS are still attractive. and we didn’t like this week’s breakdown and it’s still struggling. Still, ideal pattern here to 5691 is possible and we’ve seen this one take off like crazy and leave people in the dust.
OVERALL: Until 2390 comes out, bears will have to claw their way. Market didn’t get bad employment news and just not seeing this market come apart too badly on Monday and issue a major breakdown signal.
WEEKLY CHART: We ran cycles through August and they are mixed. We are not thinking that the market will fall apart dramatically in July, but we doubt that there’s enough time and room for 2520 to come in this summer before things get complicated August-October. The market does seem like it will hold up into July 5, retrace into mid-July and probably hold up into July 25. Seeing lots of congestive action and it may not fall apart until after August 5.
CYCLES OVERVIEW: Lower Sunday night; bottoming/recovering Monday/Tuesday; sideways to lower Wednesday; higher Thursday; sideways Friday.
