FOR THURSDAY: (10/4) Trade didn’t like Powell’s hawkish tone, and bonds sold off heavily and stocks followed. Cycles are mixed the next few days but we have had a bias toward a retracement into Friday and that has to have us concerned. If it’s not severe, we‘re still open to 2960 into next week. Usually these hawkish Fed comments snowball overnight in Europe and Asia so higher prices for the dollar still coming if you trade at night.
DEC. E-MINI S & P 500
S & P ANALYSIS FOR THURSDAY: (10/4) Cash stalled at 2940 and sold off to parabolic support at 2920. Much below 2920 and cash would project something more serious to 2906.75 and pull futures to 2910. Futures have hit 2923.25 in the night session and we’ll have to watch how deep they will fall overnight with the hawkish news. It often snowballs in Asia and Europe. Hard to play overnight and we were less friendly for stocks as we got to the end of the week, and divergent new highs aren’t meaning much at the moment.
CYCLES OVERVIEW: Congestive and lower Thursday; volatile Friday.
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