FOR TUESDAY: (6/6) Everything revolves around Thursday’s British elections and the ECB and then we have FOMC coming up on June 14. We should get congestion of last week’s gains for a while and this may lead to boring trading. Can do quick trades from key numbers as they set up but most didn’t set up on Monday.
JUNE E-MINI S & P 500
S&P ANALYSIS FOR TUESDAY: (6/6) There was a minor 5-wave pattern completion on Friday for NQ and SP but the market is far from having a major pattern completion. This week should be congestive action. Cycles were not that bearish on Monday and failure to fall much on Sunday has us thinking that it’s still business as usual. Still, we don’t think 2440-2 will come out before we get to a retest of at least 2427. Market would have to take out 2400-3 this week to issue a larger signal; otherwise move to 2450 and 2520 will continue into July.
OVERALL: Not seeing any major market weakness until June 14-28 and if that isn’t extreme, we could see 2520 by July 11-18. Still, we think congestion very likely the week of June 5-9. Not sure what kind of black swan will come to knock this market down but the cheap money printed buys stocks that go up and everyone is happy except or your average American.
WEEKLY CHART: New weekly chart projections have suggested 2520 and we thought that might be next year but the way the market is telescoping we could see 2520 this year and then 2750 next year. Too early to think of that but we have to keep the big picture in mind for you. If the market can’t fall much the last few weeks of June, we’re open to the market holding up into mid-July.
LONGER TERM: (5/26) If we see 2520 in June, then maybe only 2300 will come in with max. correction to 2150 into October. May not get the sell signal until June.
CYCLES OVERVIEW: Lower into Tuesday; recovering Wednesday; lower into Thursday.
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