SHORT TERM: market recovers to close mixed, DOW +20
Stocks gapped down at the open this morning on overnight selling. By 10:00 the SPX hit support as it neared 1506, held, and then rallied. The rally was short lived as the SPX topped within the next hour at 1518. Then the rest of the day was spent going sideways in a narrow 1512 – 1517 range, until a small pop nearing the close. At the close the SPX/DOW were mixed, and the NDX/NAZ were 0.75% higher. Bonds were about 5 ticks lower, Crude lost $1.45, Gold lost about $1.00, and the Euro was higher.
High cap Tech stocks, especially those with strong growth, continue to lead this market. Stocks like AAPL/BIDU/CELG/GOOG/RIMM and VMW have been making new highs the last couple of days. Lower rates are good for growth, as the NDX made a new bull market high again today. The SPX, with its financial sector overweighting, has been lagging somewhat. Support remains at 1506 and then 1484, with resistance at 1530 and 1556. Short term momentum was oversold this morning, but is now beginning to rise. A durable goods orders report tomorrow, and that’s it. Should be a technical day. Best to your evening!
MEDIUM TERM: bullish
LONG TERM: bullish.
Hi Nuno,
Yes I do see that.
If the July low was the orthodox low for that decline.
Then your wedge would fit as a B wave.
I\’m not counting it as a low as you know.
cheers!
I forgot to say that this was on Daily chart.ThanksNuno
Hi Tony I\’m seeing a wedge on DAX. Tops on Aug\’8, Sept\’4 and Sept\’21; Lows on Aug\’17, Sept.10 and Sept\’18. Do you see the same? Or it makes no sense?Regards from Portugal,Nuno
Hi,
Have you considered altering your Primary wave count? If we are to extend so much farther, it seems more likely that we are in Primary III… not Primary V.
You said you don\’t place that much weight on time in measuring waves, but the third wave is usually the longest in stock indexes (with surprisingly shallow corrections such as we have had). best regards, peter