FOR WEDNESDAY: (11/16) We have some very volatile and speculative cycles happening into Friday and it coincides with Janet Yellen’s testimony so whatever she says, the markets may overreact. Stocks are close to confirming the 5-wave pattern to 2220 and the dollar is close to being done at 100.55 but extensions are possible. Think it will be quiet on Wednesday before the Yellen tornado on Thursday.
S&P ANALYSIS FOR WEDNESDAY: (11/16) Tuesday was the best day for stocks to go up, and they did. Double-top doesn’t have bearish RSI divergence so a breakout is very possible, with overnight resistance at 2182 and then 2190 and 2200. The 2220 target is still very possible. Will see where the market is in the morning and decide how to play it. Dollar isn’t done either.
OVERALL: There’s a lot of speculative energy this week peaking into Friday. 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. Once 2185 prints, it will be easy to buy pullbacks and focus on 2220. We’re long SSO on our ETF Timer.
