FOR TUESDAY: (10/23) Lots of Fedspeak on Tuesday and that always leaves the door open to surprises. Still, the trade faded the positive China news and sold off the marijuana stocks and the banks and the home builders, which are all hurting from higher rates. Cycles are volatile this week with a bias toward shorts into at least Thursday but next week we could get a big bounce so don’t get too beared up for too long.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (10/23) Weak close but it stayed above 2750. At best, a 3- wave bounce could go to 2783-84 if 2750 holds overnight. Floor resistance is at 2762.50 and cash closed 2755.88 about even with futures. Taking out 2745 overnight would accelerate things. Key cash resistance up to 2778 would put future at 2780. Cash not likely to take out 2790 if we get any wildly friendly surprises.
CYCLES OVERVIEW: Lower into Tuesday and probably Thursday; higher into Oct. 31 and Nov. 5.