FOR TUESDAY: (9/25) The Tuesday before FOMC is often higher although a rate hike is already priced in so it shouldn’t have much impact. The issue will be how many more rate hikes they project, with Deutsche Bank seeing 5 more by the end of 2019. There are a lot of cross currents out there but not sure politics means much, and the Chinese tensions are rather old news these days. The issue will be how much you want to bet on reactions to the rate hike on Wednesday and as away we play key number and pattern completions but there are always surprises.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (9/25) S & P got within ½ point of filling the 2912 cash gap and good enough to come in and buy on Tuesday if conditions set up and we have a good risk/reward. Floor support is at 2924.50 and the market left a gap at 2932. Cycles are mixed enough that we don’t want to count on anything but they tend to take it up before FOMC meetings. Usually the Tuesday before FOMC is higher as the trade tries to front-run the announcement but cycles are bit more edgy on Tuesday.
CYCLES OVERVIEW: Higher into Friday.
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