FOR WEDNESDAY: (1/31) Huge cycles the next few days and we have State of the Union, FOMC and the Congressional memo bombshell due to be released within in a few days. Market has already been crazily volatile but we expect that to increase. We should get recoveries, and the promises for infrastructure development for the US should get things going. The fall on NQ wasn’t as pronounced as S & P, and it should’ve been more with the I-Phone X forecasts and that seems to be a bright spot.
S & P ANALYSIS FOR WEDNESDAY: (1/31) Our day-trade hotline made decent money selling in the 2840/38 region this morning. The chance for a recovery with the State of the Union tonight is likely, as it’s close to major support at 2820 and will easily go back to 2840 parabolic resistance. Cycles are volatile for Wednesday but we favor upward action into Friday. For weeks we had looked for a 70-point correction matching the August 2017 one and it’s just about in, but technically and we can’t rule out 2810 on futures or 2809 on cash before the market takes off again. We’re not favoring the larger 130-point correction on cash at this time, and ideally we would like to see one more new high. We cannot get beared-up, as we have seen for months what happens to the bears. Not willing to watch all night so we’ll see what develops in the morning.
CYCLE SYNTHESIS: Volatile but higher into Jan. 31; generally higher into Friday.
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