FOR MONDAY: (10/2) We took profits on a number of positions rather than get surprised by the Catalan referendum, which is now turning into a police state event. Our work suggests a dollar retracement into Tuesday and that should mean a pop in gold. Stocks are close to very major number at 2520 on the S & P but no major short until Oct 8.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for opening comments.
S & P ANALYSIS FOR MONDAY: (10/2) We took profits before the weekend and the market never pulled back. Market very close to completing minimum pattern to 2519.50-2520. If the market is strong, it looks like it would hold 2515-6 over the weekend and reach up to 2525-26 on Monday. The minimum pattern completion on the daily chart is at 2527-29 from the August low. Usually the market will top the Monday of employment report week and do a wide-range correction and then do a divergent high by Friday. Upper resistance up to 2535 and 2547 is possible.
NEAR TERM: Thinking that the market will start coming off the week of Oct. 9-13 and be in trouble until about Nov. 6. I suspect we will have to wait until the last minute for the Employment report on Oct. 6 and watch pattern completions. Running out of time to get to 2547 and we’ll have to see where we are by Oct. 6 and then lighten up on portfolios after that point. The honeymoon can quickly end with saber-rattling increasing with North Korea.
The weeks of Oct. 8-20 are the ones that look more like the market will be in trouble.
CYCLES OVERVIEW: Higher Monday; lower Tuesday; secondary high by Oct. 6.
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