FOR WEDNESDAY: (12/13) Trade waiting on FOMC for Wednesday. Everyone expects a rate hike but will Yellen throw out any grenades for her final post-FOMC speech? Christmas cookies and champagne as usual. We get a bit frozen on FOMC days and we can only play the key numbers and patterns. They tend to buy dips on the S & P and it’s not done.
MARCH E-MINI S & P 500
S & P ANALYSIS FOR WEDNESDAY: (12/13) Market hit 2672. Support overnight at 2667 with upper channel resistance toward 2680-1. We looked closely at patterns and cycles and we’re still expecting 2 more highs to 2689 and 2705 before a dip to 2595-2600. Latest computer model is projecting 2672. I suspect that the market will hold until Dec. 20-22.
BIG PICTURE: The larger pattern on the S & P are becoming clearer with probably a 4th wave congestion coming between 2600-2700 and then a move up to 2920. Next weekly chart cycle high is June 2018.
OVERALL: Not sure we should think correction until 2700-5 comes in and then it might not mean much. It could be 100 points. We’re running cycles for January and February and will report soon.
CYCLES OVERVIEW: Volatile Dec. 13; higher into Dec. 15; higher into Dec. 20-22.