While Dow Transports and Industrials gave early topping signals and Russell has been struggling, NQ and the S&P have not given it up yet. We are still
friendly stocks for about a week until S&P cash hits 5,400 and not
in trouble unless S&P cash takes out 5,250 now. NASDAQ 100 June
futures went and held key support at 18,240 on Friday. The S&P only
managed a 3-wave fall although it did hit 5,193 —a bit deeper than we had
liked. The astonishing close last Friday kind of thing funds love to
see and so often 1st of the month buying comes in.
S&P 500 (Daily Bars), Monthly Pivot Levels and 9-Day EMA.
June 5 = Weekly Reversal Up.
Cycles look positive the week of June 3rd and into the FOMC [Wednesday, June 12]. We had alerted you for secondary highs into the FOMC and they are starting to manifest. We are clear about a fall from June 12th into June 20th and then will evaluate the pattern. Because the market only fell in 3 waves and NQ fell to the minimum support area, new highs on NQ to 19,200-19,300 are very likely.
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