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Mid-day Update… Rubber band snap? – If, Then… Market Timing

Mid-day Update… Rubber band snap?

By Rod David | May 3, 2017 - 1:39 pm

If probing under yesterday’s lows was the stretch…

This morning’s 2378.00 bias-down target and unfinished business at 2377.25 were probed down to 2375.50. There’s still room down to 2374.00 if not also 2371.50.

They could be tested before the 2:00 FOMC statement. If not greeting the news above this morning’s 2383.50 high, then fresh low are likely in reaction to the news.

Global liquidity issues persist. The pre-FOMC anxiousness will eventually be replaced by pre-post-close earnings anxiousness. In between there is potential for a negative knee-jerk reaction to the news, and its snap back up to fresh session highs, into yesterday’s range.

It’s still possible for a break lower to extend, without recovering. It’s less likely, but the next lower objective would be the 2361.00 area. Rallying without a fresh low is possible, too. But the rubber band stretch might be lacking.

Posted in members-only, Mid-day Update, S&P