S&P 500 gapped up to test the next target zone of 3993 to 4003. I expect that to be the majority of the excitement today as the market begins to go into stasis waiting for the FOMC statement tomorrow afternoon. I would think they try to bounce back from a test of prior resistance at 3974 that should now be moderate support. I can’t rule out an eventual new high on the day but not a sure thing. If under 3974 at some point, fair to try to fill the gap and push for 3958 or just under though I think that is more likely something to watch out for tomorrow morning.
Taking a quick peek at Euro, it is stalling a bit just over the swing high from a week ago. Starting to see some exhaustion signals from the Wave 59 9-5 study when the RSI is up in overbought territory. Bears need Euro back under 1.0805 and better 1.0757 to have much to work with. I am watching this and the Dollar Index as I think there is a good chance they resume the trend from early February to early March which is down in Euro and up in DX.
How about gold? I know out analysis on gold as being ready for a deep retrace at a minimum is not what many people want to hear, but I can’t help but see it as ripe for a steep selloff. Well, we see some evidence of that today as it is dropping under 1952.00 which is an early sign of trend reversal. I’ve added some short-term supports to keep an eye on at 1943.90, 1932.10, and 1916.30 of which I prefer the lower two. Next thing to watch for is a five-wave pattern down from the high where this swing is the third wave.