FOR THURSDAY: (11/8) We always have a bit of paralysis before FOMC. Stocks are overbought but not done until 2863-66 or 2874 comes in. Logic suggests a recovery for the dollar to 9640-50 but will it hold? Gold isn’t acting well and we may throw out cycles, which are friendly into Friday, and assume it won’t take much to break this market.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR THURSDAY: (11/8) The upper target of 2813-16 came in already and now we wait for the FOMC. We’re at a point in the pattern where a 15-point correction can come and then another 45 points higher. Given that minimum levels have come in, it will be harder to chase now. Cycle aren’t that negative and we wonder if 2863 will come in by Monday at the rate this market is moving. Floor support is at 2792 for Thursday. The pattern on Fed days is often a dip at the announcement and a rally into the close. There is no follow-up press conference.
CYCLES OVERVIEW: Generally higher into Nov. 12-13.
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