monday morning

SHORT TERM: stocks open slightly lower on good inflation report
Overnight the Asian markets were mixed, but China’s SSEC posted another all time high. Europe came in 0.55% higher, but our stock index futures were mixed going into the opening. At 8:30 the March Core PCE was reported flat, lowering the trailing twelve month inflation level to 2.1%. Consumer spending was also reported to have contracted somewhat. Stocks opened slightly lower as the SPX pulled back to 1492. Bonds rallied on the news up over 1/2 point, Crude is 50 cents lower, Gold down 60 cents, and the Euro is lower. At 10:00 the Chicago PMI recorded a more than expected decline, but still displaying manufacturing expansion in the region. U.S. Construction spending was also reported mixed. Short term momentum has worked off its overbought status and is now neutral to negative, but not oversold. Commercials continue to maintain their long positions from the mid-March lows, as Speculators remain short, despite new highs: see COT chart. Also, the FED did a massive Repo last wednesday, highest I’ve seen in quite a while: see FOMO chart. Short term, the SPX may now be ready to edge higher in Micro wave 3, support is at SPX 1489. Best to your trading.
MEDIUM TERM: bullish, still targeting SPX 1530
LONG TERM: bullish.

About tony caldaro

Investor
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3 Responses to monday morning

  1. tony says:

    Hi Guys!
    Looking at SPX 1474, and if needed then 1464 for support.
    Gold remains under some pressure too, with support at $665.
     
    tony

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  2. Anonymous says:

    Hi Tony:
     
    where do you think we are headed on this pullback before we hit 1530 target on s&p? thanks
     
    i am looking for s&p breakout point at 1462 area? any thoughts? thanks
     
     

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  3. Frank says:

    Hi Tony,
     
    You think Gold\’s wave 4 is over?  Today the volume is very low.  Both GLD and GDX is still depressed by 5 day SMA.  Let\’s hope they get moving soon…
     
    Frank

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