FOR WEDNESDAY: (11/15) Lots of surprises in the markets and a lot of gyrations about hopes and fears around the tax bill impacting the dollar and other markets. Will have to see what develops overnight but usually a market in motion stays in motion, and that may mean we’re wrong about the dollar and the euro this week. Stocks teetering on the edge.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR WEDNESDAY: (11/15) SGlad we were patient with this market as it rubber-banded back to the upside and rather than be a perfectionist about it, we should just get short. Doubt that 2582 will come out and that seems a long shot. If the market is really congestive, it could consolidate between 2570 and 2579 and not break but the tension is building on the tape.
OVERALL: The market did generate a negative weekly chart close and a first Hindenburg signal so we’re right about topping action here. We have been sucker-punched many times over the last year and 2617-18 never came in on the cash and we need 2550 to come out to celebrate for the bears and even then we are looking at 2485. We are seeing at least a 110-point fall to 2485. It does look like a Christmas recovery will happen the week of Dec. 11-15 and possibly into the Dec. 22.
CYCLES OVERVIEW: Lower into Wednesday and into Friday.
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