SHORT TERM: market pullback/correction continues, DOW -205
Overnight the Asian markets lost 0.1%. Europe opened lower and lost 0.8%. US index futures were lower overnight. The market opened at SPX 1454, three points below yesterday’s close, then continued to decline. At 10:00 Existing home sales were reported lower: 4.75 mln vs 4.82 mln. The decline continued throughout the afternoon until just before 3:00, when the SPX hit 1430. A small rally to SPX 1436 followed. Then the market dipped to end the week at SPX 1433.
For the day the SPX/DOW were -1.60%, and the NDX/NAZ were -2.30%. Bonds gained 12 ticks, Crude lost $2.15, Gold dropped $19, and the USD was higher. Medium term support drops to the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Last night the FED reported an increase in the Monetary base: $2.65 tln vs $2.59 tln, and an increase in the M1 multiplier: 0.911 vs 0.900. Today the WLEI was reported higher yet again: 56.1% vs 55.7%.
The market opened lower today and continued the decline that started around noon yesterday. After hitting resistance at SPX 1463/64 yesterday the market steadily declined until hitting 1430 today. Nearly the entire 2+% gain on the week was wiped out in a bit more than 24 hours. This type of market activity certainly looks like a C wave in the NDX/NAZ. And now, the SPX/DOW as well. More on this in the weekend update.
Short term support drops back to SPX 1422/27 and then 1413/16, with resistance at the 1440 pivot and SPX 1463/64. Shirt term momentum hit extremely oversold at the low. The short term OEW charts turned negative right after the open with the swing level now around SPX 1447. Best to your weekend!
MEDIUM TERM: uptrend in jeopardy
LONG TERM: bull market
Pingback: HAS chart analysis | Wall Street Stocks
What we need is a comparable clip of a grizzly. We can get tossed by either.
roadmap for monday, chart and spread sheets, time for caution:
http://standardpoor.wordpress.com
Thanks, Tony.
I am watching this chart very closely. All should be clear within the next couple of days.
http://scharts.co/QTZvnm.
Awaiting for your weekend update.
thx Mario
Tony, any thoughts on AAPL?
Been looking for slightly under $600
Tony, you have any wave counts/chart on aapl?
http://stockcharts.com/public/1269446/tenpp/15
Couple of interesting articles I found on Wikipedia:
http://en.wikipedia.org/wiki/Quality_of_life_index
http://en.wikipedia.org/wiki/List_of_countries_by_inequality-adjusted_HDI
Kind of ironic Mitt Romney mentioned Spain in this week’s debate: turns out it scores higher than the US on both indices!
Also Spain’s debt crisis originated mainly in the Private Sector, from an overheated property market. Didn’t have anything much to do with it’s Welfare State. Same is true of Ireland.
There’s a lot of bogus information being bandied around about Europe in this election cycle!
Politicans talk about what sounds good.
Which is not necessarily the facts or the truth.
As a famous Chief of Staff once said;
“You will believe, what we tell you to believe.”
And a famous actor once said:
“You want the truth. You can’t handle the truth!”
I think it gets down to which candidate tells the most believable lies. Only 18 more days! Looking forward to the weekend report. Thanks Tony.
Hey C B
I was an “arb” clerk standing on the outer ring on the west side of the pit working for FLX (his badge acronym ) He was a filling broker for Paul Jones/Louis Bacon, Dean Witter, Virginia and got over flow from Goldman Sachs, Merril Lynch, Stotler (Eli Tullis) and a few others.
I was born in 1964 The Year of the Dragon
They threw you to the pit bulls right out of school?
Nice introduction
Can imagine
Lee, thanks! Wow, you were so fortunate to learn from those guys and experience such once-in-a-lifetime thing like ’87 – it sure must have been great for ur trading and survival in the markets from then on. I still couldn’t see you in that video though..maybe I need to look pixel by pixel..lol..or you need to show up in my state to play a little golf sometime.
) Maybe that’s why you like (living near) water so much -water nourishes wood, they say.
“born in 1964″ – so ur a Wood Dragon, Lee – hey, that’s a very nice sign!! I’ve just googled you
Good count. I am still wondering if this isn’t some sort of a-b-c-d-e type of wave 4 playing out.
The Dragon is anything but a formidable foe in Chinese culture. Unlike the demon that gets slayed in Western literature, the Dragon is a symbol of good fortune and intense power in Eastern culture. In Chinese tradition, the Dragon is regarded as a divine beast.
Interesting! Thanks Tony. Also Jupiter in Gemini since June Jptr. -symbol of luck and expansion
Jptr. In Gem -luck and growth through acquiring assets & opportunities present themselves QUICKLY…so iyt’s easy to lose/make money quickly under these conditions…so far so good….so guys, speeding allowed this year..
thanks Tony. The year of the Dragon, or the year of the drag-on, huh?
Lee, I know where u are in that vid – u were that guy yelling: tomahto, I want all my orders cancelled today
serioulsy Lee, can you tell us sometime what you were doing that day so we can learn a bit more about the markets in those days…that would be fun. Thanks Lee.