FOR TUESDAY: (2/27) As much as we would like to trend-trade and hold, action on Sunday and potentially this week reminds us that these markets have rhythms that change weekly. The dollar failed to breakout last week and cycles point lower this week unless Powell turns uber-hawkish, and gold could get pulled up. New highs on NQ remind us that the SP will follow and that late to the party bears are going to be in trouble even if we still get wild 30-50 point corrections at times. Never a dull moment.
MARCH E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (2/27) Market not far from 2802 now and that may be a blue-collar sale with month-end profit-taking likely into Wednesday but not expecting any huge sell-off, and even a pullback to 2750 would seem about the most extreme. With NQ likely to accelerate the first few weeks of March, we have to stay open to higher prices eventually but not thinking they will happen after 2802 comes in. The Monday before employment report often can be a big range day that gets consolidated so once upper action gets completed, we could see a 35-50 point pullback and deep range develop. Normally that would be exciting but is now only par for the course. The larger swing off of the 2530 region from Feb. 9th may not be done until 2802 comes in and the ideal time window for that may be March 5 to 8th but it could go longer and higher now. . Seasonal weakness into late March has a better chance for whippy action and retest of 2600.
CYCLE SYNTHESIS: Topping and lower into Wednesday.
