FOR WEDNESDAY: (9/26) Another FOMC meeting. They usually buy them, and that should be the case overnight and into before the announcement but starting to sense a fall after the announcement into Thursday. We do favor higher dollars into Friday, and that should mean we have to sell gold in the morning and silver despite heroics today.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (9/26) Not happy with action on Tuesday but it wasn’t damaging enough to turn bearish. The more bearish pattern would say that we could get a recovery to 2935 and come off and if the market takes out 2914 or so, it may be heading toward 2910 or 2887. With a cycle low due into Thursday, starting to think that’s more likely and we’re going into the end of the month. If the trade gets more rate hikes in the future than it wants, it could have a knee-jerk reaction. We have a bias for a positive reaction in early October. In the end, we’re heading toward friendly October seasonals, and upward pattern completions will come in toward 2960 and 2992 into October even if we manage a pullback into the end of the month. Countertrend traders would even have to wait for more extreme upward movement toward 2935-40 and risk spikes around the announcement to play.
CYCLES OVERVIEW: Topping and lower Wednesday; lower Thursday; higher into Friday.
