FOR WEDNESDAY: (2/21) Market was overdone and a 2-day congestive fall isn’t that significant. Next key pivot point for most financials is Sunday, Feb. 25. We think it will be a stock high, dollar high and gold low and crude high. Some of it will get retraced on Wednesday but that will set up entries for Sunday. We like to let the dust settle and will focus on Wednesday entries.
MARCH E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (2/21) Congestion triangle in place with support at 2706 and 2700 and resistance at 2735. We have a bias for a sale on Wednesday but if it’s a 4th- wave triangle, it should break to the upside to 2802. Any early weakness this week doesn’t negate our premise for a 78% retracement up to 2802 on the current swing even if it takes until March 4 or longer.
CYCLE SYNTHESIS: Congesting lower Wednesday; higher Thursday/Friday/Sunday.
