FOR TUESDAY: (1/09) Not sure we learned much from Monday’s action and the NE is still digging out from its storms. There are two very energetic cycles on Tuesday and they may bring surprises, so do not get too complacent. In the past these cycles have been bad for gold so continue to move stops up and take profits there.

S & P ANALYSIS FOR TUESDAY: (1/09) Market didn’t fall enough on Monday to tell us much. Slight new highs already tonight remind us that this market still wants to go up. First resistance at 2749.50 but much through 2753 and resistance moves to 2762 and 2775.50. We’re running out of time and it might be on Tuesday. Will the 70-point correction start from 2762 or 2775? Market is tiring and letting off steam today is healthy. Some cycles point lower into Friday but we always watch pattern completion. Pointless to look for shorts. The 5th-wave target on the hourly is now up to 2775.50. We didn’t quite fall 16 points so possible that we could get a C-wave down from 2649.50 but unclear. Market should hold up a few more days with a pullback due into Friday, Jan. 12.
OVERALL: Patterns suggest the need for 70-100 point pullback and that could start next week but it will be inconsequential with such a strong start to the year. The most bullish pattern would allow only a 30-point pullback and then a 100+plus point move up. Luckily, we’re luckily long from our ETF timer via SSO from the close of 2017 and that position is doing very well. Sometimes you just have to jump feet first into bull markets.
SHORT-TERM: (1/05) We can see the market holding up a few more days but still looks lower into Jan. 12 and Jan. 19. Not sure what will happen but we do have the debt ceiling coming up again for Jan. 19. It does then seem like a 3-week correction into Jan. 24-25 is likely with a recovery into Feb. 2.
CYCLE SYNTHESIS: Higher Tuesday; lower into Jan. 12; lower into Jan. 19.

Comments are closed.