tuesday update

SHORT TERM: market closes mixed, ending a successful October.
October, notoriously one of the worse months of the year for investors, proved to be one of the better months of 2006. While many prognosticators where anticipating the four year cycle low to occur in October. OEW was projecting that the four year low was actually occurring in July. And it did! For the month the SPX/DOW rose over 3%, and the NDX/NAZ over 4.5%.
As for today, the stock market opened to the upside, while making the highs for the day within the first 15 minutes. Then quickly turned lower until about 1:00, when it established a lower low than yesterday. After that it rallied into the close, to end the day mixed. At todays lows, a positive RSI divergence appeared in the SPX/DOW, and the NDX had a positive divergence with the SPX. We can probably lable this low as wave A of the pullback, as noted on the SPX15min posted below. Tomorrow’s economic data brings us Construction spending, the ISM, and Oct. auto sales. Nothing that major. Expecting the fourth wave of this uptrend, wave iv, to resume shortly. Happy Halloween!
MEDIUM TERM: bullish … most major indices uptrending
LONG TERM: bullish.

About tony caldaro

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