tuesday update

SHORT TERM: new uptrend highs, DOW +72

Overnight the Asian markets were mixed and closed flat. Europe opened higher and gained 0.3%. US index futures were higher/lower overnight, and at 9:00 Case-Shiller was reported higher: +5.5% vs +4.3%. The market opened one point below yesterday’s SPX 1500 close, but then rallied back to the uptrend high at 1503 by 10:00. At 10:00 Consumer confidence, a lagging indicator to consumer sentiment, was reported lower: 58.6 vs 65.1. The market then quickly pulled back to the low of the day at SPX 1498, and then began to rally. Heading into the close the SPX hit 1509, then ended the day at 1508.

For the day the SPX/DOW were +0.50%, and the NDX/NAZ were mixed. Bonds lost 2 ticks, Crude rallied $1.05, Gold gained $7, and the USD was lower. Medium term support remains at the 1499 and 1440 pivots, with resistance at the 1523 and 1552 pivots. Tomorrow: ADP at 8:15, Q4 GDP (est. +1.0%) at 8:30, then the FOMC statement at 2:15. Should be quite a volatile day.

The market opened about flat today, rallied to SPX 1503, then pulled back to 1498. Holding the SPX 1496 wave support level, the market was set for a move higher. And it made new bull market highs. The suggested short term count worked out well, but we are in another subdividing wave. After Minute wave iv bottomed at SPX 1491 the market became quite choppy for a couple of days. We counted, however: a Micro wave 1 to SPX 1502, an irregular flat Micro wave 2 to SPX 1496, and a Micro 3 now subdividing into Nano waves: 1503-1498-1509 so far. We should see, in the coming days, five Nano waves up to complete Micro 3, a small pullback for Micro 4, then another rally into the OEW 1523 pivot range to complete Micro 5/Minute v/Minor 3. After that, the largest pullback since the end of December should follow.

Short term support is at the 1499 pivot and SPX 1471/75, with resistance at the 1523 and 1552 pivots. Short term momentum rallied to quite overbought during today’s rise. The short term OEW charts remain positive from SPX 1420, with the swing level now 1494. Best to your trading on potentially volatile FED day!

MEDIUM TERM: new uptrend high SPX 1509

LONG TERM: bull market

CHARTS: http://stockcharts.com/public/1269446/tenpp

About tony caldaro

Investor
This entry was posted in Updates and tagged , , , . Bookmark the permalink.

153 Responses to tuesday update

  1. torehund says:

    France on the hunt for yellowcake in Mali. Whole world on the look for resources that they arent using..

  2. leelee64 says:

    Hey R C
    Bar time !

    FB reporting

  3. mokiepon says:

    Israeli AF made a strike on a weapons transport convoy near Syrian-Lebanese border. Don’t know any details, but bet it could spell trouble.

    M

  4. leelee64 says:

    Here’s a chart from an insane guy @Stocktwits he was calling for 1200′s a month ago then turned bullish above 1434 ish SPX recently… which wasn’t a bad idea in my little world
    Is this a form fitted chart or do u guys have the same TL ? THX
    http://3.bp.blogspot.com/-oryZynoX310/UQlyt4gtKFI/AAAAAAAAM7c/vetxJQTnrNo/s1600/1937+Trend+Line.png

  5. leelee64 says:


    Let the robot boogie down

    • torehund says:

      Whenever the robots sell of I grab my kettlebells, do some Turkish getups…

      • torehund says:

        ABC completed on SP 500 from 1510 top, but market will not make it that easy.. maybe boots will connect on some ugly complex ABC stuff later on. But you never know, boots arent exactly throwing shares out the pc -window.

      • torehund says:

        Ok then a small ABC after the big one…time to short circulit the boots for today or ???

  6. pbnj123 says:

    Tony – thank you for the update on the SPX chart – careful indeed.
    Cheers

  7. leelee64 says:

    Tony posted a -Div and a careful 3 ? :)

  8. blubrd67 says:

    It looks like we won’t get volatility that usually happens with FOMC. Will probably finish around 1508, and battle next 2 days.

  9. Well, I guess if this thing is going to move, its up to me … here goes nothing – selling 1000 ES at the market …

  10. leelee64 says:

    Here’s a trick I learned to get things moving
    There was a bigger reaction in the SPU’s when the O.J verdict came out….see if that works

  11. laralda says:

    I don’t post here often – but do read everyday to get a concensus. It appears to me charts are setting up for another overlap into wave 1 territory. I have a pullback to 1420′s ahead but also see another run at the all time highs before the market takes a nasty turn. I’m sure there are few here that agree – but every 3rd wave in this rally from Mar 09 has followed this same pattern. Guess we’ll find out soon enough – just my 2 cents.

  12. leelee64 says:

    https://www.deepakchopra.com/blog/view/921/being_right

    This isn’t horse shoes but horse shoes is fun !

    • leelee64 says:

      Best of luck to everyone here @ Tonys and I mean everyone.
      Trade well !

    • CB says:

      : ) that’s a nice thought..thanks Lee!

      • CB says:

        btw. Lee, great point about people always wanting to understand ‘why’ before acting/deciding, which you made earlier. So true…often the real reasons may be incomprehensible to us & yet we want (any)reasons to reduce our uncertainty… CNBC will provide all kinds of them, for instance, and who cares whether they’re real or not…make us feel better to “know” them.. they’re like pacifiers 4 babies …otherwise we have to just accept dealing with uncertainty & have to take leaps of faith..and that’s really tough to do, isn’t it.
        Enjoy the fed deay everyone!

  13. blubrd67 says:

    Everything according to the plan so far, to minute details… amazing!

    I just heard on the Bloomberg News that Tony DeMark has submitted application for OEW course with Tony starting next week. :)
    Is that true Tony? :)

  14. mokiepon says:

    Too much micro movement for me. I’m just going to sit it out until the 1520-23 (+/-7pts) takes hold. Otherwise, just makes me dizzy.
    M

  15. leelee64 says:

    well all the 9:30 am bandits who say its been easy are long now by price and time day trading…U guys are sooo spoiled this month. Blame RC for my motor mouth he asked me a question ;)
    Ill wait for a nother

  16. leelee64 says:

    CL
    Tested a scene of the crime area from 9/19/12 this am.. @ 98.25 98.24 being todays high

  17. leelee64 says:

    Hey R C

    RE: Top Step Vid

    I’m never sure what Danny is talking about haha A bud sent me the vid and said look it’s Brian and Robert on the top step :) I dont follow em. We certainly werent on a 10 day winning streak heading into OCT 19th 1987. But Danny (his badge was DBOY back in the day) was a very busy guy during the crash as he ran the desk that did Soro’s and Bacons biz among others.

  18. rc1269 says:

    after a negative GDP print driven considerably by lack of defense spending, i wonder if the market will start to care more about sequestration

    • mokiepon says:

      rc, mkts prob ably will care, even though ~125-150 billion per year for 10 years is just a drop in the bucket. You know how those guys love to fight. I think Harry reid has lost his mind, if he ever had one.
      M

  19. tommyboys says:

    BIg GDP miss (-.1 vs +1% expectation). This should be enough to kick off a meaningful pullback from near these levels. Possibly a bit more on the upside first but that wave 4 – 1470-80 range likely coming to a theatre near your very soon now…

    • tommyboys says:

      Maybe even HDs 1440 could be seen over the next few weeks…buy the dip however would be the mandate if/when we get down there I would think.

    • mokiepon says:

      tboys, if we see pullback today it’s because we hear negative news from Fed. Looks like metals expecting more stimulus. IMO, I don’t think Fed will increase amt of stimulus; Bernanke knew this number was coming. Metalsbugs likely to be disappointed. (Yep, gold falling back a tad now already.) That might actually be the negative news for mkts. in general. Going to be interesting, either way.

      M

      • tommyboys says:

        Certainly don’t expect any additional stimulus. If anything they’d pull it back – but that ain’t likely after the GDP number. Don’t expect anything meaningful from Fed one way or another. We’ll know shortly…

      • mokiepon says:

        tboys, I agree. No changes.
        M

  20. thebbliss says:

    Tony,

    Interesting pattern of irregular flats in the current SPX uptrend…Minor 2, Minute iv and Micro 2. Maybe Nano iv is next.

    I’m wondering about the pending Minor 4 correction. Would it be a valid wave count for a deep correction to the 1440 pivot such that Minute b under Minor 2 is violated, but with no overlap of the Minor 2 top at 1424?

  21. leelee64 says:

    photo/1

    Be safe !

  22. torehund says:


    A tribute to a woman, and bou arent we losr withou them.

  23. vinniesj says:

    Please excuse me for posting here and not at the top of your list, I didn’t see anywhere to make a new post. Tony, your calls have been as good as Trending Waves all of 2012, and so far for 2013. My question is specific to your Tues update: You mention a test to SPX 1523 and then a fall greater than Dec 2012, and you spoke in days, so how many days apx till you see a correction?, and what is a reasonable level to correct to by Feb options expiration. I ask so specifically, because I am tracking the VIX into Feb opex.

    • tony caldaro says:

      Hi Vinnie
      The 1523 pivot range +/- 7 points.
      With tomorrow a potentially volatile day.
      All the waves could unfold in one day.
      Support would then be SPX 1471-81.
      Which would likely be tested before FEB opex.
      Have to see how it unfolds first.

  24. mokiepon says:

    I think The Fed Minutes come out at 1:15CT? Then, usually Bernanke speaks at 2:30. Someone on another site told me sometimes, if the announcement is considered ‘important’ to markets somehow, there will be a trend-countertrend-trend move, all within the time between announcement & Bernanke speak. Will have to watch for this tomorrow.

    Please correct me if I have the times are incorrect.

    M

  25. H D says:

    So kudos to you bulls holding strong at 1500. Admittedly I have been bearish through 1499 pivot but if you think this BS 1 sided trading is gonna hold me back after 10 straight days of green you r outta your mind. Closing the blinds. Meth and paint chips loaded!
    See ya’s at the 1440 pivot! and that’s a fact jack!

    • torehund says:

      Think nikkei is on the go after a brief zig-zag… C leg up to 13 000, Should take 3 months. Then its May 1st…
      FED continuous infusion.

    • tony caldaro says:

      Steep drop HD, but tomorrow, pre/post FOMC, could be your time

      • vinniesj says:

        Please excuse me for posting here and not at the top of your list, I didn’t see anywhere to make a new post. Tony, your calls have been as good as Trending Waves all of 2012, and so far for 2013. My question is specific to your Tues update: You mention a test to SPX 1523 and then a fall greater than Dec 2012, and you spoke in days, so how many days apx till you see a correction?, and what is a reasonable level to correct to by Feb options expiration. I ask so specifically, because I am tracking the VIX into Feb opex.

    • leelee64 says:


      I think I saw some tumble weed pass ya Danny.. Shout out to Robert and Brian !! Standing in the back ground directly behind DBOY (Danny) They are one of the 4 ? filling brokers left in the pit .
      Well u heard it… nothing but rainbows and puppy dogs ;)

      • torehund says:

        Good to see optimists on WS,and this time around it could be for real. Did the Mayans bring us over the last fence ? M and A should start furoushing, heck train is passing big pharma fast…
        Or maybe its Ms presenc that do the magi, sleep well.

      • CB says:

        LeeLee , U could be doing that too…would be lots of fun

        Can’t help but notice that Sir Anthony from Holt, MI has his EDT (minimum :) target @1074.77 wow wonder what Ben is gonna have to say to trigger that..

      • leelee64 says:

        Hey C B

        If I could do it in my pajamas I would consider it :)
        People like being told why all the time when sometimes it’s just because.

      • CB says:

        LOL! now, that’s an excellent idea, Lee :) ) I believe U once said you could do it in ur sleep, so PJs sound fine… here’s a little prpmo suggestion for ur show producer…” Leelee64 -the official mascot of the CME – directly from his masterbedroom -sexy and he knows it” – for a VERY limited audience & by subscription only

      • CB says:

        ooops…promo suggestion, that is… yes, my typing is gna get much better after Jupiter turns direct..

      • rc1269 says:

        hey Lee, i’m confused by DBOY’s comment that the “last time this happened was the ’87 crash”, in reference to up 10 days in a row. looking at the charts – is he referring to the 11 up days in June of ’87? i don’t see any others that are that long heading into October. just curious. thx bud

    • ronini3 says:

      Hey HD, I just noticed your avatar!

  26. torehund says:

    http://www.bloomberg.com/news/2013-01-29/tanker-glut-worsening-as-opec-cuts-most-since-recession-freight.html

    Funny article to present when rates have been going up since Dec. Doing EW count on STO (tracks WTI), I see 5 complete waves and a possible huge gap up, to close most of the recession decline !
    And tank should follow initially, as hoarding will prevail.

  27. tuesday short term indicators/systems:
    eliott PSTT: remains on buy signal.
    qqq indicator: +8, up from +7, remains on buy signal.
    smart money indicator: remains on -9, sell.
    2faced longs 0.65% loss today.
    2faced shorts: 1.45% profit today.
    spy + 0.39%

    heaven and hell long term crash indicator: remains at +6 , no crash in sight.

  28. bman64 says:

    Tony, what’s the smallest time frame you get down to, when your doing your analysis?

  29. eeid26 says:

    Hi Tony,
    Are you concerned that the $NDX (qqq) is not following the same pattern. its lagging behind.

    • tony caldaro says:

      EEID,
      It’s telling us there is a correction right around the corner: next few weeks?
      Seeing some weakness in foreign markets too.
      Cyclicals have been running while growth has remained flat.
      Eventually the tide will turn for the cyclicals.

  30. pooch77 says:

    Tony,so we should see a small pullback tomorrow 1503-1505,micro 4

  31. llerias7 says:

    I guess the coming pullback (1st week of Feb) should point to the mid bollinger band i.e. 1477 points on SPX…

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