FOR WEDNESDAY: (12/21) Trade waiting on GDP on Thursday for something interesting so we may have a lot of congestion and then a lot of position squaring on Thursday. Friday is a ½ day of trading. Winter officially begins on Wednesday but temperatures are warming into Christmas for many part of the country so all the wonderful white of the past week may melt. We’re concerned that sickly holiday trading will force patterns to take their sweet time to complete and we have had to learn patience. Usually the patterns will complete if you wade through the mud of holiday trading. We have published our monthly Financial Visions report which also features Part 1 of our outlook for next year Contact us at 800-788-2796 or email support@fortucast.com if you want to take advantage of our 20% holiday discount on a subscription.
MARCH E-MINI S & P 500
S&P ANALYSIS FOR WEDNESDAY (12/21) We chased the market a bit because the end of a 4th-wave triangle often just shoots out to a new high and that more likely to happen Thursday more than any other day this week. Possible to get congestion and as long as 2240 doesn’t come out, we assume they will eventually get the market up to 2295-2300 by Christmas. Volume is thinning so we hope we’re not stuck very sickly ranges. Much above 2173 and we won’t worry and key support is at 2257.
OVERALL: We do see 2295-2300 this week and then congestion next week or have a surprise pullback if any major terrorist attempts happen and upset the trade. So far they are confined to Europe. Any surprises and a break below 2245 might start leading to 2230 and then 2219.
BIG PICTURE: Patterns suggest two new highs to 2300 and 2330 before we really have to worry about a 100-point pullback that may happen into the spring. Unless there’s something really wild coming, our focus for swing trades will be to buy a pullbacks.
