FOR WEDNESDAY: (7/25) Dog days of summer and some wild cycles are still present but we think stocks will hold up another day at least but it may get dicey going into next week’s FOMC meeting, and often stocks will sell off 35-50 points before the announcement. Not sure if the best day for that to happen but on the ropes.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (7/25) We cancelled buy orders at our 8:30 am update and the market hit all the exit targets before buy orders would have been hit. Stocks spurted strongly early but fell back 19 points off of their highs, which was a bit or a yellow flag but managed to close above key support at 2818-1–just barely. Wednesday is a bit of a mixed and confusing day, and it may only produce a secondary high. We had 2832 as a 5th-wave high a few weeks ago, and there may be reason to stall here. The more bullish pattern would project 2846 on cash, which might take futures up to 2849-50.
CYCLE SYNTHESIS: Volatile Wednesday; lower into Friday and into July 31.
