wednesday update

SHORT TERM: market remains in tight trading range, DOW +3
Overnight most of the Asian markets were lower. Europe opened lower and closed -0.80%. US index futures were lower overnight, and the market opened around SPX 1122. At 9:45 the Chicago PMI was reported: 60.0 v 56.0. The market then rallied to yesterday’s close at SPX 1126 by 10:00. Another pullback followed to retest the low for the day at SPX 1122. Then the market drifted higher into the close. Another 4 SPX point trading range on the day. For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.25%. Bonds gained 4 ticks, Crude added 45 cents, Gold lost $6.00, and the USD was higher. Support for the SPX remains at 1107 and then 1090, with resistance at 1133 and then 1168. Short term momentum was slightly oversold at the opening and then edged higher during the day. Tomorrow, the weekly Jobless claims will be reported at 8:30 to end the economic week.
Posted the temporary wave 3 label after the SPX dipped below monday’s low of 1124. Thus far the pullback from 1130 is acting like a fourth wave: the hourly chart reached oversold, and the pullback has been the largest since the wave 3 rally began at SPX 1094. Expecting a little more downside short term, but not too much as the top of wave 1 was SPX 1116. Best to you and yours in 2010!   
MEDIUM TERM: uptrend
LONG TERM: bear market rally

About tony caldaro

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65 Responses to wednesday update

  1. x says:

    Tony, I take that as a no. You prefer – a brief pause before moving higher, Thanks and happy new year.


  2. LJ says:

    Thanks Tony and all the regular postersbest to all in 2010


  3. tony says:

    Happy New Year!


  4. tony says:

    Hi X,When the PPT gets out of the way Gold will go parabolic.


  5. Roger says:

    You gotta love those pump monkeys, the futures ramped up after the close.Roger


  6. CB says:

    Here\’s this guy who sees 137.50 for the EUR in the next few weeks


  7. Impulsive says:

    I will play this out loud, If/when SPX decides to follow EUR New Year everyone.


  8. H says:

    Biggest volume of the session right into lockup. NQ at 38.2% I\’ve counted an impulse from 1882. Good trades in the New Year all.


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