Market Analysis for Nov 10th, 2004
Although my work argues that the coil pattern on E-mini December S&P is complete, and that the price structure SHOULD climb to new recovery highs above last Fri.'s high at 1171.75, the question is when? Will it be AHEAD OF, or AFTER the FOMC announcement later this afternoon? The only reason it actually matters to me is because the immediate reaction to the FOMC action and statement usually triggers some sort of knee-jerk move in the opposite direction of the underlying trend. If such a scenario unfolds this PM, then we will have to brace ourselves for the prospect of a spike to the downside, which I hope our stop survives. In any case, we have our stops at 1160.50, which I will not "adjust" ahead of the FOMC announcement....Be that as it may, the pattern is ripe for upside follow- through at just about any time now-- to test the top of the trading range at 1170, and then to thrust out of the range into new high territory.
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