Today is a crazy day for S&P 500 technical analysis! The market clearly expects an interest rate cut either today, or some time this month. The question is, will it happen? It’s definitely being priced in at the moment as the pre-market exploded higher this morning. Everything looks perfect for the continuation of our Daily wave 3 up, there isn’t a bear in sight at the moment. Absolutely all technical indicators are to the upside with a bullet, so make sure you’re trading with the trend!
The Russell 2000 index is doing much the same, looks like the buyers are happy to buy anything at all today including small cap stocks, so if you’re more into small cap investing and you got in on the pullback from the last couple days, you’re sitting pretty today. No question this is a bull market so we need to trade it accordingly. Resistance overhead at about 1592 so watch for price to hesitate at that level and be ready to take profits if it does (assuming you are a short term trader or daytrader)
As for crude oil trading, the Black Gold is also in a strong uptrend now, but this trend is getting tired so be careful. Looks to me like we’re in a daily wave 5 so watch for a divergence to form and make sure you have a divergence trading strategy so you know when it’s time to take profits.
The gold market today is also showing nice strength – it seems that absolutely everything is up across the board. Looks to me like gold is also in a wave 5, as long as it doesn’t break the most recent higher low. Watch for resistance around 1440 or so, and be ready to take profits or use our Elliott Wave Principals to catch a long after the full-cycle ABC correction.
The natural gas market fundamentals are looking good on the larger timeframe, but in the short term be careful because it looks like another wave 5 to me. Be ready to take profits at a Fibonacci extension level or when you see a divergence confirm with bearish price action.
Last but not least is Crypto. For our bitcoin market analysis today it looks to me like we’re entering into a Daily wave 5 now, so once again watch for a confirmed divergence, a Fibonacci extension level, etc. Then be prepared to take profits or get long after the full-cycle ABC correction.
Today is just crazy bullish but it’s a Fed Day so things could get bumpy around 2PM Eastern Time. Especially if there was a surprise to happen and the market’s expectations were not met. Remember also that no market moves in a straight line, so be careful with chasing a move like this in the morning. Wait for a pullback, count your waves on the smaller timeframe, and you’ll know when to get long your chosen market. Everything is bullish right now so watch also for a bullish flag pattern to show itself, and when you see the upside breakout, you know it’s safe to jump into the water.
Good trading everyone!
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