FOR THURSDAY: (11/17) Not sure if Yellen’s testimony will mean much with an expectation for a rate hike in December. Cycles are such that a surprise or Stocks are close to confirming the 5-wave pattern to 2220 and the dollar confirmed the 100.55 but extensions are possible.
S&P ANALYSIS FOR THURSDAY: (11/17) Cash failed to take out 2182 to leave open a very small chance for futures to retest 2148-50. We’re skeptical and it will not take much for upward action to happen. The print of 2185 on futures overnight was not confirmed by cash and could be a fake-out but more likely a move to 2188 and 2193 and 2200 are likely and cycles on Wednesday night are friendly, suggesting a done deal by morning. A speculative cycle could push the 5-wave pattern completion by early next week to 2220 and that would then lead to a congestive 3-wave pullback in December.
OVERALL: Optimism for the US isn’t likely to stop but still there are some shadows from the post-election unrest. There’s a lot of speculative energy this week peaking into Friday/Monday. In the past it has lead to higher prices so a surge to 2220 this week wouldn’t be a surprise, and that would create 5 waves higher and set up congestion before Thanksgiving. The chance for a pullback to 2148 again is possible but less likely. We’re long SSO on our ETF Timer.