FOR MONDAY: (4/30) We’re moving toward pre-FOMC position squaring and congestion, and then we also have month-end profit-taking by funds on Monday. 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.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR MONDAY: (4/30) The S & P couldn’t take out yesterday’s high but didn’t fall much. Our day trade did well as key support at 2658 held. Lately, Mondays have been higher, and we did find some positive cycles for Monday even if Sunday looks lower. Still, it’s the end of the month and profit-taking often sets in, and we find that the Monday before FOMC is down more than it’s up. I suspect the strategy on the day will be to sell higher prices if key patterns come and divergent highs fail.
CYCLE SYNTHESIS: Topping Monday; retracing on Tuesday; mostly lower into May 5.
