The S&P 500 is the market in waiting for information to respond to and the primary focus is on the Fed announcement on Wednesday. The market needs an excuse to do something and right now that excuse is not there. The bias for this market is still to the upside.
A quiet day is expected on Monday in the S&P 500 as the market positions itself for the Fed announcements later in the week.
After the volatility witnessed in the S&P 500 on Thursday, the expectation would be for Friday to trade inside the range of Thursday. Without new fresh fundamentals, a neutral close on Friday would be a logical way to finish out this week.
The perceptions of the fundamentals on Thursday could provide the incentive for buyers to continue pushing the S&P 500 to higher levels. The perceptions I'm talking about would be the markets point of view of future Fed interest-rate action.
The rally on Tuesday supported by buyers coming into the S&P 500 futures market indicates moment and picking up to the upside. The challenge now is can that buying paper continue this momentum. I think you can but I would not look for a big day up on Wednesday.
The structure in the S&P 500 futures market with Friday and Monday's action is neutral as the market waits for the CPI number coming out on Tuesday. The overall bias for this market is still to the upside. It will be interesting to see can buyers follow through.
The selling action in the S&P 500 on Friday could imply buyers taking profits before the weekend. The expected price action on Monday would be for the S&P 500 to trade inside Friday's range as the market gets ready for additional fundamentals coming out next week.
Will the S&P 500 demonstrate confidence with a positive close above Thursday's high as we go into the weekend. The expectation is for a higher close on Friday.
With continued fundamental information expected on Thursday and Friday, the market is waiting for continuing fundamental information to support a directional move.
The S&P 500 on Tuesday broke lower and its structure implies a market waiting for new information. The current expectation would be an inside day on Wednesday.
Without any dramatic fundamental news a rest day on Tuesday would be expected.
The strong close on Friday and the S&P 500 created a technical uptrend in the S&P 500. Follow-through be expected on Monday but not a large range day. Look for the market to catch its breath on Monday.
Buyers are back in the S&P 500 on Thursday but can they continue with the positive close on Friday which is the expectation.
The day structure in the S&P 500 implies a market that is then waiting for the PCE announcement on Thursday. The price structure implies an up move for Thursday.
The structure on the daily chart in the S&P 500 implies that buyers bought the break to lower prices over the last 2 days. The next critical test would be high in a close above 5020 in the next 2 days.
In the last 3 S&P 500 sessions sellers enter the market at the highs. The expectation would be a down move on Tuesday but not a large range.
The expected rest day in the S&P 500 on Friday could continue on Monday as the market gets ready for fundamentals coming out during the week. The bias for this market would be a higher close by the end of the week.
The enthusiasm to the upside shown in the S&P 500 on Thursday would not be expected on Friday unless we get very positive fundamentals driving this market higher. A higher close would be expected but not with the same size of movement shown on Thursday.