FOR FRIDAY: (10/6) Another employment report day. Market is rather overbought and end of the week profit-taking could sneak in if there are any surprises. The NFP number has been weaker with the lost jobs in Florida and Houston. Market doesn’t seem to care. Upper target on the S & P toward 2562 now.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for opening comments.
S & P ANALYSIS FOR FRIDAY: (10/6) Starting to get measurements for pullbacks with a target of 2562 followed by a pullback to 2477 and max. 2429. First minor resistance at 2557 and support at 2540. Telescoping nature of the market means that if we are to top-pick, it would be from 2462 and from next week. Not sure how we’ll play the employment report but we shouldn’t get more than a 15-point pullback from any high or there is a sign of a top.
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 above 2562 and we’ll have to see where we are by Oct. 8 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: High by Oct. 6-8.
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