FOR WEDNESDAY: (10/17) Stocks cycles and overbought conditions from the largest sucker punch since the Trump election need a pullback but if it’s not much, then higher prices and a larger breakout could happen Thursday with Friday looking lower. Those waiting for the next big push lower will probably have to wait for Oct. 22-26.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (10/17) Earlier in the week we mentioned a recovery to 2820 and it’s in. Cash has rallied in 3 waves and has resistance at 2924. Doubt the trade will push the market up another notch before FOMC minutes, and some cycles are a little wobbly so a pullback is likely on Wednesday. Thursday is looking better so we’re staring to go with our original idea that this market should recover a bit more than expected. That would be healthy and set up a better risk/reward for sales next week.
CYCLES OVERVIEW: Lower Wednesday.
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