FOR MONDAY: (9/24) Cycles into the weekend are wild and the political background noise is a huge circus that the market barely cares about. Other countries are also very vulnerable. We’re looking for lower action on stocks for Sunday night into part of Monday but then that may be it. Any falls on the dollar will set up a 2-week rally, and gold is failing and any 2-day bounce needs to be sold for the rest of the week and probably the next 2 weeks. Crude is on the edge with OPEC news but it could come back from the dead.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (9/24) Market fell perfectly to support at 2933 but didn’t do any last-minute flourish. Lower support at 2926.25 could come in on Monday and cash left a gap at 2912 that would push futures down to 2917. The more bullish pattern would go for a new high to 2964 but we’re wary about the Mondays before FOMC. Still, if the market can’t break hard, it will go higher. Sunday is lower and probably Monday but that’s probably a buying opportunity, as any more Sept. corrections appear unlikely and the trade is already sniffing out the October seasonal surge that will go up to 2993.
CYCLES OVERVIEW: Lower Sunday/Monday; higher into Friday.
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