(2/23) Will the trade wait for Trump’s joint address to Congress on Monday to blast off again? That may be the case. Bullish energy for risk-taking peaks into early next week and the market should be close to topping action for US stocks then. For now the market keeps buying pullbacks.
MARCH E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S&P ANALYSIS FOR THURSDAY: (2/23) Tuesday’s high probably won’t get taken out but cash might squeeze out a few ticks to 2369 to look more complete. Cash support for a minimum minor pullback would be to 2354, which would push futures to 2352. Upper target on futures if we are wrong would be 2375.50. NQ patterns could be done. Extended target of 5381 doesn’t have to come immediately. We’ve been looking for at least a 13-tick pullback from the highs which would target 2352. If 2348 can come out, then maybe the deeper pullback to 2332 could manifest into Thursday. In any case we are ready for a 4th wave and then new highs next week. Shorts are hard to pull off on this market especially if they happen on news.
OVERALL: (2/15) We had an 80-100 point pullback in March into early April but will that be from 2400-2420? Not that far away now. Still thinking an early April low and then new highs this year still and not thinking crash this year and maybe a 10% correction between August-October and 20% of things seem more dire with US rioting and a deeper European collapse.
CYCLES OVERVIEW: Lower into Thursday.
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