FOR FRIDAY: (10/26) Cycles are very wild on Friday but may end up to the positive side for stocks so beware if you get too beared out. Monday has a better chance for a deep break than on Friday. Expecting wild congestion. Patterns for crude and metals are far from targets and running out of time for it come in.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (10/26) Huge bounce on Thursday was followed by a sell-off late in the day and the market is down in the night session and hit 2667.75. We had exited our short position SDS (2x) at the open, as we were worried about a big bounce–which came and went. Three-wave bounce doesn’t confirm much but it could turn into a 3-3-5 pattern into next week that goes up to 2768. Less than a 46% chance for a new low to 2548 but not off the table. Monday seems weaker than Friday and cycles are still on high-volatility alert.
CYCLES OVERVIEW: Higher Friday; lower Monday; higher into Oct. 31 and Nov. 5.
