friday update

SHORT TERM: sell the rumor, buy the news.
The economy was expected to turn down in the second quarter, which it did. But no one expected it to slow down as much as it did, except the market. The bulls were concerned, myself included; the bears were jubilant, as a possible inflationary recession would wreck havoc on the stock market. The course of the economy is still very much dependent on the FED’s future course of action and inflation. The market is signaling an intermediate term upturn, and it looks impulsive. Thus far, it would appear the correction is over. This is the first time during the entire correction, that the SPX has rallied, made a one day pullback, and then continued moving higher. When patterns begin to change it’s usually a sign of a change in trend.  
The market opened this morning on a gap up, pulled back until 10:30 and then rallied higher the rest of the day. The closing numbers: the NAZ/NDX +2%, the SPX/DOW +1%. Even the TRAN and the SOX index enjoyed a good day, up 2.5% and 3% respectively. For the week: the four major indices SPX/DOW/NDX/NAZ were up 3% –  4%. The "techs" finished the day with their highest close in two weeks, and the "cyclicals" with their highest close since the first week of the month. Will update everything over the weekend. Best to yours!
INTERMEDIATE TERM: SPX/DOW uptrending, NAZ/NDX rallying impulsively.
LONG TERM: bullish.

About tony caldaro

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