FOR TUESDAY: (2/20) 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. Three-day holidays can have a lot of movement. 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
S & P ANALYSIS FOR MONDAY: (2/20) Chances for a retest high in the morning are high at 2746 for day-traders wanting to buy overnight. We did find some positive cycles for Tuesday but the trade may quickly sell rallies on Tuesday and sell-off into Wednesday, but it may not be that significant even if the market is at the 62% retracement. Cycles are strong enough that post-holiday buying could emerge and push the market toward 2762. Wednesday looks lower but the market looks higher on Thursday and Friday of this week so 2802 still possible this week. Cash closed at 2732 and futures in the night session are close to that. We’re inclined to buy in the night session and see what develops.
NQ has already retraced 78% and projects 6892. Acceleration here would bode well for the S & P taking out 2802. While we have favor a wild triangle pattern between 2600-2800, if the market doesn’t turn down sharply between Feb. 21-26, we’re not seeing too many windows for it to happen.
