tuesday update

SHORT TERM: market tries to rebound, DOW -25

Overnight the Asian markets were mixed. Europe opened higher and closed +0.40%. US index futures were higher overnight as well. At 8:30 FED governor Duke’s speech was released: http://www.federalreserve.gov/newsevents/speech/duke20110524a.htm. The market opened higher at SPX 1320 and continued to rally. The SPX had closed at 1317 yesterday. At 10:00 New homes sales were reported higher: 323K vs 300K. The market continued higher until 10:30 when it hit SPX 1324. Then a pullback followed. At 1:30 the SPX hit 1314, then rallied to 1320 by 2:30, and closed at 1316.

For the day the SPX/DOW were -0.15%, and the NDX/NAZ were -0.50%. Bonds gained 5 ticks, Crude rallied $1.80, Gold rose $8.00 and the USD was lower. Support for the SPX remains at 1313 and then 1303, with resistance at 1363 and then 1372. Short term momentum rose from quite oversold yeaterday to above neutral today. Tomorrow, Durable goods orders at 8:30, then FHFA home prices at 10:00.

The market tried to rally today but could make little progress to the upside. It did successfully retest the OEW 1313 pivot again but ended negative on the day. It certainly looks, more and more, like we have been in a downtrend since SPX 1371. Important support remains at the 1313, and then, 1303 pivots. Short term resistance is now at SPX 1326 and then the 1363/1372 pivots. Best to your trading!

MEDIUM TERM: uptrend high SPX 1371

LONG TERM: bull market

CHARTS: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1606987

About tony caldaro

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17 Responses to tuesday update

  1. rfijoydeep says:

    RED ALERT:Market may breakdown any time today or after the close.Next down move may get to 1280 in this week.Brazil’s bvsp also about to start it’s final down move bellow 60000.


  2. gemxwavedotcom says:

    Elliott Wave Forecast For 5.25.11 http://Elliottwave.info


  3. H D says:

    poor little seals


  4. CB says:

    Thanks, Tony.


  5. MGD says:

    Could be possible we are abt to form anothet EFI ???…if that is going to happen ..the market should go to 1305 and rebound


    • MGD says:

      It looks we have one, but not so deep as the others…I see five waves 1313-1323 (a)..then 1323-1311 (b)…and c unfolding…I wonder if this could be counted as wave 4 of wiii of my alt count or could be another 1,2 formation…


      • MGD says:

        (c) could be finish if (c)=(a)


      • MGD says:

        ..or c could go to abt 1328 if c=1.62a…50sma is at abt 1327


      • H D says:

        naaa… they all look like WTF waves. OMG’s next.

        Kinda wondering though if it would screw the most to trap a bunch of shorts by gapping back up over 1330 pivot and runing it all the way back up. GL


  6. phil1247 says:


    why do you care so much about all the FED babble??

    they are running their mouths constantly


  7. Lee X says:

    Thanks Tony


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