The market finally got a pullback and put in a red day, which was a much needed rest if it plans on going higher soon. It could continue down into next Monday and then make another run up to try and hit the 7000 magnet. If it does, then I'd look for the falling white trendline to be the support and likely target.
It will be around 6750 next Monday, and as long as any move up in the next day or two fails to take out the recent 6905 high the I'd say the pullback yesterday was an A wave and the move up would be the B wave, with the C wave down into the 15th. This is probably what's going to happen as I really don't expect the Fed to say anything at the meeting tomorrow that will surprise the market enough to squeeze up to new all time highs... but who's knows for sure?
That could still happen as it would shock the most traders I suspect as most are expecting the pullback to continue with last weeks 6905 high being the top of the move. And it could happen? Logically, it does look more likely to pullback from here then to stage some squeeze move.
I'll just say that I can't do much at this point but watch as we are in a choppy period, which might last all month. I'll be very interested in the expected low into Christmas as that's where I'll look to go long for the Santa Rally. Nothing more to add as it's just not very clear what's going to happen this week.
Have an blessed day.
