FOR TUESDAY: (4/24) Stocks look higher on Tuesday but there’s an overall volatile cycle so markets could get whippy. Crude looked great and the correction may be over, and that makes us wonder if we can look for a slight new low on stocks on Wednesday. Will depend on if Tuesday’s rally is strong or not. Cycles are generally more positive.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (4/24) Stocks managed a new low on the day to 2657 before coming back. After some weakness last week, everything was awesome Sunday night when futures gapped higher at the open on North Korean capitulation headlines–and then stocks rallied early on, but as rates started to surge up towards 3% (10Y) so stocks started to get spooked… and once they hit unchanged lost all momentum…but of course, dip-buyers were back to save stocks…
From a pattern perspective, the slight new low was enough to complete and require a 3-wave rally to 2692-2700. Cycles are at their best on Tuesday for a rally with Wednesday looking lower on Thursday looking higher. Will it take 3 days for a-3 wave bounce and then set up a push into Monday?
CYCLE SYNTHESIS: Higher Tuesday; lower Wednesday; higher Thursday; lower into April 30.
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