FOR WEDNESDAY: (10/24) Sucker-punch day, and usually bounces happen in 3 waves so a minor pullback may lead to another push up to kill all the late bears. We have a low into Thursday or Friday and higher prices next week but we’re open to a low as late as Monday. In the end, the worst cycles are over this week and the bargain hunters will return soon. Not sure why yet.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (10/24) Sucker-punch day, with the market going 10 points below key support and then bouncing 60 points. The 2750 cash gap had to be filled and we noted that at our noon update. Usually these rallies happen in 3 parts so wondering if we’ll retrace to support 2729-32 first. Upper channel resistance at 2976. Some energy is bearish on Wednesday so we’re favoring a retracement day but not a new low. Wild and hard to take anything home at night.
CYCLES OVERVIEW: Lower into probably Thursday; higher into Oct. 31 and Nov. 5.
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