FOR TUESDAY: (11/29) GDP and many other reports on Tuesday may get the markets moving again and then OPEC on Wednesday. At this point selling stocks and buying bonds and selling the dollar and buying gold are countertrend to the trends but that may be all there is for scalp traders going into the end of the month. We often see a big flourish early in the week and then congestion into the employment report, and that’s probably what will happen on Tuesday.
DEC. E-MINI S & P 500
SWING TRADING RECOMMENDATION: Sell Dec. e-mini S & P at 2205.50 and 2209.50 with a 2214.75 stop.
S&P ANALYSIS FOR TUESDAY: (11/29) We failed to get filled on shorts at 2110. Market has resistance at 2106 overnight and support at 2191.75. The chances for 2113 are small but not impossible. Resistance up to 2208.75 with key cash resistance at 2111. Possible that the market could still be starting a 30-40 point pullback into the end of the week. First major support for futures is at 2193 but current patterns project 2173.50.
OVERALL: It would not take much to create a 3rd-wave acceleration to 2232 and 2250 but we are more likely to see a pullback to 2148-50 into mid-Dec. which is seasonals and then a secondary high into Christmas. After Christmas, the market looks rather vulnerable.
BIG PICTURE: The market is acting like it is in a 3-of-3 expansion wave and the current projection is up to 2269 and 2300 into 1st quarter. Given the speculative energy out there, no one should be looking for some massive movement lower now. Market would have to take out 2100 to turn bearish.
CYCLES OVERVIEW: Lower into Wednesday; higher into Thursday.
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