FOR FRIDAY: (5/25) Fridays before 3-day weekends are usually quiet. Usually by 9:30 am everyone who came in is gone. Not sure if GDP will mean much. Markets are open Sunday night and usually until 10:30 am-12:00 pm on Monday so check with your broker. Asian and European trade can be brisk sometimes. Cycles over the weekend do have a high terrorism alert and there might even be some major domestic violence. Be safe with holiday driving particularly this weekend. 

TRADING RECOMMENDATION: Wait for morning comments

S&P ANALYSIS FOR FRIDAY: (5/25) Market got within a tick of our 2418 target and not sure we’ll get a retest. While we see 2430 next, market likely to pull back to 2400 the next few sessions. Possible that even 2390 will come in early next week but it wouldn’t mean anything. Market will need a close below 2375 to make a dent for the bears. We see no reason in taking anything home. We may have some day-trades within ranges toward 2418 if things set up for a retest.

OVERALL: We do need to set our sites higher as the game continues and may not really let up until after mid-June. Daily chart projection to 2430 now and the rule is not to sell a market in new high territory. NQ is now suggesting an extension up to 5984 and it usually has the greatest upside potential so late bulls will have to look there.

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.
Bottom line: Reason to take some profits on length before the long weekend but no reason to top pick or consider shorts.

NEAR TERM: We had thought about early June as a secondary high. We’re not quite ready to go for new highs but there are some patterns that can be read that way and nothing about this market will surprise us. So I think we have to forget about May 17 fall and see what develops on recoveries into next week.

LONGER TERM: (4/26) Expecting that 2150 is the most likely first downward target into September/October if the market can close below 2300. May not get the sell signal until June.

CYCLES OVERVIEW: Sideways Friday; lower into Sunday/Monday and Tuesday; higher into May 31.

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