SHORT TERM: DOW makes new bull market high, DOW +69
Overnight the Asian markets ended flat. European markets opened lower but closed +0.4%. US index futures were higher overnight, and at 8:30 the Trade deficit was reported slightly lower: -$42.0 bln vs -$42.9 bln. The market opened opened one point above yesterday’s close at SPX 1430. Then pulled back to SPX 1429 before starting to rally. At 11:30 the SPX hit 1438, one point below yesterday’s bull market high, and then began to pullback. Heading into the close the SPX touched 1432 around 3:30, then closed at 1434.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were mixed. Bonds lost 3 ticks, Crude added 45 cents, Gold rose $6, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Tomorrow, Export/Import prices at 8:30 then Wholesale inventories at 10:00. Also the FED starts its two day FOMC meeting.
The market opened relatively flat this morning, rallied to within 1 point of the bull market high, (the DOW made a new high), then without a good showing from the Tech sector eased back into the close. The SOX, for example, has not made a new uptrend high since mid-August, and AAPL has been in pullback mode since early yesterday. Yesterday’s SPX 1439 high does look like the end of Minute wave iii, and today’s SPX 1429 low the end of Minute iv. However, the market did not close high enough to rule out a retest, or even a pullback to short term support.
Support for the SPX remains at 1422/27 and 1413/16, with resistance at the 1440 pivot and 1463/64. Short term momentum rose from yesterday’s oversold level and spend most of the day around neutral. The short term OEW charts remain positive from SPX 1412 with the swing level now around 1424. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market
Thanks Tony, interesting day tomorrow,
Cheers/Roald
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Hi Tony, today’s action is quite similar to an “ending diagonal”, if correct, should that not occour in an ending wave 5 of a larger degree of a -b – c movement ? Do you have this alternative from the 4th of June ?
By the way – thanks for one of the best EW bloggs I have reviewed, including comments from followers.
BR/Roald
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Hi Roald,
Thanks we appreciate it.
We had an alternate count, but the DOW recently clear the highs and it was eliminated.
The choppy action at the highs is either distribution or uncertainty.
Since this rally is a Minor wave 5 from SPX 1397 it could be completing with an equal/higher high than 1439.
Any major pullback from here would be considered Int. wave iv with a completed Intermediate iii from SPX 1309.
The upper 1390’s should be good support before Intermediate v gets underway.
cheers!
tony
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…this should be good for European and Global stocks.
Thanks Tony.
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thanks Fiona
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IBM Time Ratio 161.8…
http://astrofibo.blogspot.ca/2012/09/ibm-time-ratio-1618.html
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Looks very wedgy up here to me. I would expect a minor pullback soon.
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EURUSD Price Ratio 61.8…
http://astrofibo.blogspot.ca/2012/09/eurusd-price-ratio-618.html
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re: insider buying…I am not sure how useful this chart is, copmared to other data that everyone might have, cuz this ETF has been thinly traded so far, but here’s one way to track it : Direxion All Cap.Insider Sentiment Shrs http://screencast.com/t/oyaZVjxov0
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CB – I track the insider ratio chart in Barrons. I’ve tried to post the chart but it won’t let me – or I don’t know what I’m doing !
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Thanks Tommyboys. Yes, you’ve got the one we should follow, I think. It would be good to take a look at it. If you want to download that free sftwr. from Jing.com that would let you copy what you have on ur screen. (caution copy rights, though)
Maybe we can call Igor to the rescue – he knows somegood tricks
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http://www.techsmith.com/ link to Jing if anyone feels like experimenting with it.
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Here you go:
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Igor, thanks.
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Yes Tony….was looking for the link…markethighsandlows….on your blog as you stated it was free to those who read your blog.
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thank scottycj1 for offering
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