FOR TUESDAY: (5/1) We’re continuing toward pre-FOMC position squaring. A lot of mixed signals for stock market on Monday but if it does recover, it seems like a sale on the week if we get a good set-up and confirmation. May not have many good trades and then if we do put something on, we have to deal with FOMC day ALGOS and volatility. We may end up staying patient.

TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (5/1) Market was weaker than we thought. Our day-trade service pulled out 7 points from 2679. While we saw the lower end of the trading range at 2661, the market took that out by 15 points. We have noted that if the market is down Monday before FOMC they often buy it back going into the announcement. Support at 2634 and 2632 if there is more damage overnight but there is a pattern completion down there and if it happens, it would set up a buy on Tuesday. Seems like we’ll have a down day on Wednesday.
CYCLE SYNTHESIS: Bottoming and recovering Tuesday; mostly lower into May 5.

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