Quick Note: Monday's action showed a channel break (completing 5 waves down) and now the market is in a corrective mode (Wave B of Wave 5 under the Expanding Diagonal View) or Wave 2 of C under the larger ABC view. Under either view, the SPX has already seen the largest point advance since the August decline commenced. Be prepared for some wild gyrations (even more so than today during this process). For example, one option would be a corrective Flat (larger A-B-C) bounce with the current leg being part of Wave A to be followed by a sharp decline in Wave B then concluding with Wave C (5 waves up to complete). The initial downside target once Wave A has completed would be another retest of the broken channel and under a Flat scenario be open minded to a retest of the lows (3500). A zig zag correction would form a higher low for Wave B as another option. For now I'm monitoring a potential rising wedge forming on the SPX that is illustrated in the charts below that still has some room to climb above today's high as long as remaining intact. The next FOMC meeting is November 2nd to be followed by the mid term elections on Tuesday November 8th.
For tonight/tomorrow on ES watching 3760 pivot with support below at 3730, 3700 and above resistance 3790-3800 then 3820.
Earnings season is upon us so please remain diligent if trading any names due to report soon. Finally, there are many geopolitical issues that are relevant currently (BOE, Russia/Ukraine, China)
Please take a moment to look at the trade ideas.