FOR THURSDAY: (9/7) Buy the rumor, sell the fact. Thinking that if stocks sell off into the weekend and also gold is higher and the dollar lower then whatever happens over the weekend will have nowhere to go and the markets will rebound. Cycles turn a bit more depressing and pessimistic the next few days and that may lead to more major selling of stocks. Weird Wally Thursday now as we move to Stock index rollover. Many traders rollover on Friday now but we’ll go with Thursday as we’re interested in a 2-day short for stocks at least. Open to panic selling coming the next few days unless the Plunge Protection team can absorb it.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR THURSDAY: (9/7) We need to roll to Dec., which is trading 1.75 points higher but we’ll quote both Stocks stayed below our ideal sell zone of 2468-2469 basis Sept. but we pulled our order. Support overnight is at 2459 and 2452 basis Dec. You may be able to get short in the 2462 basis Dec. region in the night session and see if some cascading happens. The chances of a fall to 2406 are much stronger. Computer models suggest at least a push to 2448.50. Already we have contract rollover on Thursday so Weird Wally Wednesday is here, and usually it’s lower. If 2442comes out, it would confirm the “C” wave fall to 2400-5 that we had given up but is starting to make more sense.
WEEKLY CHART: Septembers are usually not too kind for the stock market but if they get the budget crisis fixed early, it would see possible. Still, we’ll favor a move to 2400-2405 and then see if it can come back. There’s still a good possibility that based on patterns that a new high to 2500-2520 would be possible in September. In the end we still will have a minimum fall to 2360 or max. 2300-2320 as a fall correction target into early November with a multi-year high due into 2018.
CYCLES OVERVIEW: Lower Thursday; lower Friday.
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