FOR TUESDAY (5/15): The Dollar recovered late as stocks gave up their overnight gains following remarks from Commerce Secretary Wilbur Ross that seemed to pour cold water on Trump’s overnight tweet on ZTE and hopes that a trade war with China was easing. We see lower dollars the next few days so not sure what will change overnight but overall, we’re looking for pullbacks on stocks into Wednesday but still open to new highs if 2700 holds into Wednesday’s low.
JUNE E-MINI S & P 500
S & P ANALYSIS FOR TUESDAY: (5/15) Market got within 1 point of the 2742 region and sold off as we have talked about for the last 3 days. Resistance for sales is up to 2734 and 2739 isn’t out of the question in these topping situations. First support at 2717 and then 2702. Will favor day-trade sales in the morning if we can get a decent risk/reward with secondary highs. We’re not expecting any major fallout and a new high to 2769 or more is possible next week if the market behaves.
OVERALL: Pushing through 2717 would start to set things moving lower but need for 2700 to come out. Three waves up from the 2550 area would project 2769 ideally. Possible it could happen by May 22. Lately, the seasonals have turned later lower in June rather than May and often this is after the 2nd week of June.
CYCLE SYNTHESIS: Retracing into Wednesday.
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