FOR WEDNESDAY: (3/7) Gary Cohen resigned late in the day and the stock market sold off strongly, and there are more Tariff wars with China looming in late news. It’s going from bad to worse for globalists following the Gary Cohn resignation, as Bloomberg just reported that the Trump administration is considering a major clamp down on Chinese investments in the U.S. by slapping tariffs on a broad range of its imports in response to alleged intellectual-property theft. Some chaos already overnight and more coming.

S & P ANALYSIS FOR WEDNESDAY: (3/7) We had a bias toward 2735 coming in as a bounce, and it did. We had expected a weak day on Tuesday and it got weaker in the afternoon, and the market already hit 2681.25 in the early night session in response to politics. Whippy action the week of employment report isn’t shocking, and a 78% retracement of Sunday-Tuesday’s range would take the market down to 2665-66 with first support overnight at 2680. Cash closed at 2728 so not sure that futures can get much below 2680 overnight before filling the gap in the morning. Great ranges for day-traders if you can watch it full-time. Hard to take a position overnight. If the market holds 2666 and 2680 overnight, then chances are it will be a buy despite saber-rattling around trade. Still, as we have pointed out, the Trade wars of 2002 sunk stocks into 2003 so this is serious!
CYCLE SYNTHESIS: Generally higher into Thursday; lower into March 14-15.

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