wednesday morning

SHORT TERM: stocks gap down on overnight selling, but recover
Overnight the Asian markets were all lower, with China’s SSEC dropping 6.5% as the government continues to try to cool that market. Europe came in about 0.95% lower, and our stock index futures were under pressure all night. At the open stocks gapped down with the SPX hitting 1510 within the first few minutes. The market then took hold as the Techs started to rally, led by GOOG and AAPL, (which made a new high). At the lows of the day, thus far, short term momentum was still at neutral. It never did get oversold. Bonds are up several ticks, Crude is 30 cents higher, Gold is $.00 lower, and the Euro continues to go lower. At 2:00 the FOMC minutes will be released. Earlier this morning ADP reported a slightly lower than expected rise in employment in May. The government releases its employment report on friday. Marking yesterday’s high of SPX 1522 as the end of a B wave, wave A was posted at 1505. If this pullback is certainly going to turn into a correction this would be a good place to get going to the downside. Best to your trading!
MEDIUM TERM: neutral, targets hit
LONG TERM: bullish.   

About tony caldaro

This entry was posted in Uncategorized. Bookmark the permalink.

10 Responses to wednesday morning

  1. tony says:

    Hi Frank … was certainly a "tug of war" today. Especially after the FOMC minutes.
    Hi Mark … nice update before the US market took off.
    Hi Adrian … yes you are correct, everyone needs to be in the pool before it starts to rain.
    Hi Kevin … the DOW broke out today, with new highs and 13,600+ close.
    If the SPX exceeds the 1532.43 print tomorrow we should be headed to 1553.
    Hi Christopher … record shorts at record highs. Shaun mention the COT readings this morning.
    The Commercials are pushing this market higher. 


  2. Christopher says:

    Hi Everyone
    Getting close to that uptrend line again and close to a parabolic buy signal on the daily charts.
    Wow. More short covering here to an all time high?


  3. Frank says:

    Short cover time?  I guess all the participant betting that stock drop after China and Fed are covering now…


  4. kevin says:

    Is this a C of the B wave?


  5. Frank says:

    Hi Adrian,
    Yes, BUT as you can see, the dip buyer are very strong!  Market can not sell for more then 15 minutes before these dip buyer comes in.  The technical divergence of all sort has been there for a LOOONG time.  I mean we have divergence from the weekly chart to 15 minutes chart.  But it seems these buyer are unmoved.  Don\’t know what\’s going to take to turn the tide.  But I guess this type of thinking is what keeps market moving higher?  Oh well…


  6. adrian says:

    Hi guys,
    I guess the market doesn\’t have very simple ways (it just won\’t let us relax a little bit :))), but since, despite the technicals, the majority is or turns bullish,  we can consider that another condition is met for our much expected top to come in… just a thought…


  7. Mark says:

    Hi all,
    Watching the Toronto SX, It looks like it wants to extend the fifth wave.  The Macd at the peak of wave 5 was higher than the peak of wave 3, indicating that it probably wasn\’t a false high and there might be room to go higher. I generally find the momentum indicators on the TSX to be pretty reliable as the derivative market is much smaller here and so there isn\’t nearly as much short term stock manipulation compared to the US.


  8. Frank says:

    Hi Tony,
    Wow I guess there are just overwhelming dip buyers.  We hit both lower low and lower high today!  And now we are at 1522 again!  Although MACD Histogram (15 minutes chart) is showing another negative divergence on this higher high on both SPY and QQQQ, it seems all these technical does not matter when there are so many strong buyers… 


  9. Frank says:

    Wow, watching BULL and BEAR wrestle sure is an excitment this morning… SPY seems to be wanting to go up… it is coilig up into a very small range now.  But probably any decisive move will have to wait until 2:00PM EST for FED minutes…  side note, we did make a lower low this morning on the daily chart of all indicies though.  Is a TOUGH and VOLITILE market out there!  Tony, thanks for the great counts, I hope you are right again!


  10. Frank says:

    With that double top on all the indices (on daily chart), the dip buyer are very strong, is fight back now and may break the down trend channel formed since yesterday (on 15 minutes chart)… Geeze, these dip buyer just don\’t give up.  But I don\’t blame them, is been so long that dip buying is making them money.  Also today\’s gap down has been filled so that must gave them some confidence also…


Comments are closed.