FOR TUESDAY: (12/12) Trade waiting on FOMC for Wednesday. Everyone expects a rate hike but will Yellen throw out any grenades for her final post-FOMC speech? Christmas cookies and champagne as usual. Not much happening on Tuesday.

TRADING RECOMMENDATION: Wait for morning comments.

S & P ANALYSIS FOR TUESDAY: (12/12) With Dec. 1st being the first of 3 Fridays in December, we missed rollover on Friday and we bailed on short Dec. S & P early with a few points in profits. March is trading 3.00 points above December. The push above 2660 on Dec. and 2663 on March projects 2669.50 on Dec. and 2672.50 quickly on March. Lately they run the market up into the FOMC and then take profits. Worst of the bearish cycles was on Monday, although we do not think this week is a bullish cake walk either.

BIG PICTURE: The larger patterns on the S & P are becoming clearer and we may need to see 2756 before a 300-point correction happens and we wonder if that drags on into the spring of 2018. Even after that correction we still may see 2920 before the bull market is done.

NEAR TERM: Stocks fell enough into last Wednesday to complete a minimum pattern. Minimum support area of 2620 came in on the S & P with lower support at 2617 still possible. Telescoping nature of the breakout suggests at least two more highs and our projection to 2689 still should come in but will it take until later in the month.

OVERALL: Not sure we should think correction until 2700-5 comes in and then it might not mean much.

CYCLES OVERVIEW: Volatile Dec. 13; higher into Dec. 15.

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