tuesday morning

SHORT TERM: bullish
The overseas markets were mixed last night, but europe was lower (1/2%) and our futures started the morning on the downside, where they left off near the close yesterday. I expected some selling this morning. But this was a bit more than expected as many indices that had recently been making new highs: SPX/TRAN/R2K/NYA/DOW succumb to profit taking right from the opening. End of month selling? We’ll see. Short term, as a result of this selling, most of the indices are oversold, especially the SPX, and due for a bounce.
The NAZ/NDX held up very well this morning, neither had made new highs recently, so the reasoning kind of fit until the CFO of Google announced that growth was slowing and is now mostly organic. In seconds the futures went into a tailspin, taking the NAZ/NDX and the rest of the market with it. Short term momentum in now extemely oversold and we are due for a bounce. The EW pivots NDX 1671, NAZ 2278 and the support levels SPX 1282 and DOW 11,000 should hold until the market bounces. Another exciting day in this impetuous futures driven market.

About tony caldaro

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