FOR WEDNESDAY: (4/25) Stocks look lower on Wednesday and we’re open to sell, and tech stocks look particularly bad. Still, these wash-out Tuesdays often recover overnight setting up the best new sales by 9 am. We have had a bias toward stocks into Monday and we just missed the boat by about a day.
JUNE E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (4/25) We got faked out by the overnight action and we were thinking higher could happen today, and we were very wrong. The type of fall we had today was what we were expecting on Wednesday. Now the market is rather oversold. Bounce target is 2647.50 and 2661 has to come out to negate 2602. Market did stall at daily parabolic support at 2616 and that may be hard to take out right away. As one of our analysts notes, “the near doji bear top weekly bar cannot be ignored.” We do see a bounce on Thursday, and we’ve had an inclination for end of the month lower action into Monday but we have to pick our spots carefully. At the moment, we may consider 2647-50 if we see a good window in the morning.
CYCLE SYNTHESIS: Lower Wednesday; higher Thursday; lower into April 30.
