FOR TUESDAY: (8/7) Cycles were optimistic today and the biggest geopolitical surprise was an assassination attempt by a drone on Venezuelan President Maduro. There are still more surprises coming, and the Pound is falling sharply as fears for no Brexit deal in Britain’s ugly divorce case aren’t going anywhere. Dollar recovered and seems likely to breakout above 9550 or a major breakout with the pound falling and the Euro needing to fall.
SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (8/7) Missed getting in and still one day higher to 2864. Support at 2839 and 2831.50. Extended target now up to 2835. Always hard to blindly buy at night so we’ll see what we can do in the morning. Unless we get some wildly unexpected bad news geopolitically, cycles are strong enough to push the market higher the next few days, and there’s enough energy for new highs on NQ. Patterns suggest a move to 2875. Given cycles and the breakout energy, it‘s still a buy unless something dire is happening. NQ has more potential. The start of the 121-point fall is in doubt if we make a new high now and NQ got much of its equivalent 409 points. The sense from technicals and cycles is that any divergent high on NQ would finally lead to a more serious sell-off.
CYCLE SYNTHESIS: Higher into Tuesday; lower into Aug. 9.
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