FOR WEDNESDAY: (11/22) Will anyone be home and trading? Always worried about thin holiday conditions which make stop placement precarious. We will go with the larger patterns and see if we can survive crazy holiday conditions. Usually we find that patterns get completed after the long weekend if we are patient but if we see the wrong cycles we may have to get out.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR WEDNESDAY: (11/22) If you don’t buy the night session in a bull market, you miss out and now with 2600 hit, impossible to buy. May see sideways congestion but open to higher prices. Greed has no bounds. With the S & P having hit 2599, we doubtl that 2600 will come out before the holiday but cycles are mostly supportive with resistance at 2605-7 and 2612. Getting closer to 2617 on cash and that might set up a sale by Monday if it comes in. Upper target to 2640 on cash is a long shot and we think profit-taking will set in during December.
These markets will often do a lot on Wednesday night/Thursday/Thursday night around Thanksgiving and you have to take home length to catch it.
OVERALL: The market did generate a negative weekly chart close and a first Hindenburg signal so we’re right about topping action here but it will always go a bit more than expected and these 4th-wave fake-outs are frustrating. The divergent high to 2607 may come and maybe cash will get up to 2617. We’re seeing at least a 110-point fall to 2485. Lower target is possible to 2400-2385. It does look like a Christmas recovery will happen the week of Dec. 11-15 and possibly into the Dec. 22.
CYCLES OVERVIEW: Sideways to higher Wednesday/Thursday; pulling back Friday; higher Monday.
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