FOR WEDNESDAY: (9/20) Time for more fun and games. The feeling is that whatever Yellen says, the dollar will go down because of the following factors:
* Fed’s dot plot likely to go through a downgrade
* The storms might wreck Fed’s balance sheet plans
* Rate increases won’t necessarily tighten financial conditions
* Yellen’s future still hangs in the balance
* Hawkish Fed cries set to fall on deaf ears (again!)
The problem with all of these stories as there are often surprises.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (9/20) Patterns could allow a slight new high to 2508 but the chances of accelerating right away are small. Max. fall would be to 2486 before the market would start higher again. Resistance at 2508 and support at 2494 and then 2486 would be the most ideal place to buy if we do manage a pullback. While we’ve been confident about seeing 2519 eventually, the ideal buy zone may be 2486.
OVERALL: Pullbacks into October may only go to 2405 and then the next push up would go to 2580. Not going to top-pick this market.
CYCLES OVERVIEW: Volatile Wednesday; generally higher into Sept. 22.
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