FOR WEDNESDAY: (5/2) Another FOMC day. Our cycle work suggests a negative reaction but always a gamble and often full of surprises. Markets that are overdone could have a buy-the- fact or sell-the-fact reaction, as is the case with the dollar and gold. We’ll consider new strategies in the morning.

S & P ANALYSIS FOR WEDNESDAY: (5/2) We had the right idea on Wednesday but we can’t trade with a 7-point stop anymore. Market didn’t get to lower support at 2619 either so would have missed a lower entry. Resistance at 2659 and 2668. We have a bias toward a negative FOMC reaction but not putting in early orders in overnight. Assuming that an E-wave lower to 2665 is the most likely target but wouldn’t be out of the question to see 2690-94 and then a fall into Friday. These wild congestive swings are getting more challenging.
CYCLE SYNTHESIS: Mostly lower into May 5.

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