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With yesterday big gap-up seeing a strong reversal day and with today’s session already looking on the weaker side, our near-term outlook remains in tact. Near-term peak followed by a 4% pull-back. We’ll likely see a sell-off sometime next week. The selling should last no more than 3-5 days total.

Just as the rally stalled out with five consecutive trading days of intraday inaction, Micron earnings reignites the bulls, The NASDAQ-100 is now set on a path to test its highs.

Some signs on the S&P 500 (SPY) point to a potential risk that we could see another sharp leg lower before the bull market continues. The corrective period may still have another leg to go.

NASDAQ-100 trying to regain some momentum. Nvidia up big on news that Jenson Huang is done selling.

With all the major recent catalysts now behind us, the market is quietly consolidating ahead of the next big move.

Markets have been overbought for most of the week and are gearing up for a near-term pull-back that should start sometime in the middle of next week.

Delayed reaction to the fed sets the market on a course to all-time highs. The NASDAQ-100 rally is now at $34. We should see a big pull-back at around $40+ point range that fills today’s gap-up.

With the markets having consolidated all week, it makes the near-term somewhat murky. Traders in the CME being split on the size of the rate-cut doesn’t help any. Still, markets are likely to pull-back either on the fed or shortly thereafter.

Yesterday’s pull-back was just a blip in the overall rally that began off the September 6 lows. At this point, we’re unlikely to see a near-term peak before the fed tomorrow.

As we head into the fed meeting on Wednesday, one thing to watch closely is how the markets deal with overbought conditions on the hourly.