Tuesday’s trade was within parameters laid out on yesterday’s update. The downside pressure continued for the entire session albeit under very light volume and choppy markets. I have updated the labeling for the ES and have put into place the completion point for the Minor wave 4 correction. The ES dropped below 3950 and 3920, which started to tilt the scales and eventually dropped reaching a low at 3912 at the close which did on a pattern and Elliott basis suggest the corrective countertrend move off of the 3639 low is complete and the trend is falling back into place. Having said all of this, I can not rule out the ES turning on a tick and creating a stampede like move higher. I am not saying to expect this, but be aware of the potential should it occur.
I am expecting wild and wooly gyrations tomorrow after the FED announcement and press conference. Again, I will not assume a bullish or bearish posture because I don’t care – the markets will very likely be screaming in both directions in an effort to determine “value” and establish supply and demand. The dollars will be flowing and the opportunity to jump in and grab a fist full and say thank you will be plentiful. Stopping to determine what all of the FED speak means and what about this and what about that and the trade is gone — trade the numbers — trade the price action — use the moving averages, Fibonacci levels, MA’s, and market profile levels as in Point of Control, Value Area Lows and Highs, Extended POC and VAL/VAH —