FOR WEDNESDAY: (2/28) The surprises came on Tuesday with Powell, as in the end, his comment on fiscal responsibility and problems down the road in a few years were sobering and needed and painful. In the end they were interpreted as being hawkish. Usually that kind of movement is carried over into Asia and Europe, which missed some of the late show.
MARCH E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (2/28) Trade giving back before the end of the month and our 35-point minimum pullback is in, and not clear how much more it can fall on Wednesday. Cycles are lower and 20-day MA support is at 2718. Key Andrew’s midline support first at 2729.50. Market is going to have to take out parabolic resistance at 2777.
Cycles are weak into late Wednesday, and we’re looking for month-end profit-taking but thinking this is a pullback and will be followed by a strong recovery into Friday. The employment report is not until March 9 but this is typical action before the end of the month. Ideal sell zone is closer to 2770-1 and will have to see if that comes in the morning. Not seeing any waterfall activity or thinking the move to 2600 is starting but there were natural sell zones with the double-top on NQ. Late bulls have to realize this is a 2-day pullback that will allow them to get long.
Computer models are giving an extended target of 2855 in early March if 2810 comes out.
CYCLE SYNTHESIS: Lower into Wednesday; higher into Friday.