FOR FRIDAY: (1/12) We forget that we have a holiday weekend coming up and even though there’s a lot of trading in Europe, trading will be muted on Monday. We’re going to get short crude and gold, as we see trending situations now until Jan. 24. Not clear on the dollar but will wait for the long weekend to take a position.

TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR FRIDAY: (1/12) The push above 2760 reminds us why we should never rush to short this market. Key resistance up to 2793.25 now. We had thought that Friday was the best day be lower but will it be much or matter? Continued failing momentum suggests they will take it down the 70 points but exhaust us in the process. We had thought that the start of the move lower is more likely tonight or Friday.
NEAR TERM: Patterns suggest the need for 70-100 point pullback and that could start soon but it will be inconsequential with such a strong start to the year. The most bullish pattern would allow only a 30-point pullback and then a 100+plus point move up. We exited with nice profits on our ETF position.
SHORT-TERM: (1/05) Thinking that the market is lower Jan. 12 and into Jan. 19. Not sure what will happen but we do have the debt ceiling coming up again for Jan. 19. It does then seem like a 3-week correction into Jan. 24-25 is likely with a recovery into Feb. 2.
CYCLE SYNTHESIS: Lower into Jan. 12; lower into Jan. 19.

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