FOR THURSDAY: (4/12) Markets on edge with a potential missile strike against Syria within 72 hours. With a repeat of last year’s April 5 event pending, one has to look at that cycle. Last year the stock market fell 50 points over 8 days when that happened and given recent volatility swings, that’s more likely to happen in an hour this time. Gold spiked and the dollar fell.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR THURSDAY: (4/12) Sales on Wednesday took losses, as a broad and choppy congestion triangle is still operating. Resistance at 2662 stalled it today and support is now at 2620. Choppy ranges are chewing up everyone. Trade waiting for bombs to go off to drop it hard and if they don’t, the market will go up to 2705. Very difficult to deal with and very news-sensitive. Really untradeable but can do day trades in the morning at key levels.
OVERALL: S & P needs to take out 2672 to issue a stronger buy signal for 2705. Unlikely to happen now and a break of 2600 could lead to 2566 quickly which never came in on Monday after the China optimism.
CYCLE SYNTHESIS: Lower into Friday.