monday update

SHORT TERM: bullish
A nice gap up day to confirm a third wave in the NAZ/NDX, which is what one should expect in a third wave. Since this is possibly a third of a third, there should be many gap up days ahead. Lets see how that unfolds. Markets opened higher, took some selling for 20 minutes and rallied to the high for the day by 11:30 AM. After that we stayed in a trading range until the last 20 minutes when profit taking set in. New highs in the NYA/R2K/TRAN and the SPX confirming its uptrend. The DOW/SPX were up about 1/3% and the NAZ/NDX a little over 1% as they play catch up with the cyclicals. Short term the market is a bit overbought, and we might have completed one small impulse wave today leading to some possible minor weakness in the morning. The EW pivot points have been working perfectly. What was resistance early this morning: NAZ 2300, NDX 1690 and SPX 1295, should now be support. The next overhead pivots are: NAZ 2333, NDX 1717 and SPX 1300. Hopefully we should challenge them tomorrow. Google, showed some relative strength before the market opened this morning and rallied throughout the day to post a 12 point gain. It’s up 52 points from the recent lows in just seven trading days. Like what I am seeing. Best to your day!

About tony caldaro

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