thursday update

SHORT TERM: gap up and go opening, DOW +109

Overnight the Asian markets lost 0.2%. Europe opened lower and lost 0.1%. US index futures were higher overnight. At 8:30 weekly Jobless claims declined: 323k v 339k and the PPI was lower: -0.2% v -0.1%. The market gapped up at the opening to SPX 1787 and continued to rally. The SPX had closed at 1781 yesterday. At 10am FED governor Powell’s speech: was released and the Philly FED was reported lower: 6.5 v 19.8. The rally continued until 11:30 when the SPX hit 1794. Then after a pullback to SPX 1791 by 1pm the market moved higher. Heading into the close the SPX hit 1797 then closed at 1796.

For the day the SPX/DOW were +0.75%, and the NDX/NAZ were +1.15%. Bonds gained 1 tick, Crude rallied $1.35, Gold slipped $2 and the USD was flat. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow: a speech by FED governor Tarullo at 12:15.

The market gapped up today and just kept on going. Something we have seen a lot of in this bull market. It did not make new highs today, but got close to break even on the week after a SPX 1777 post FOMC minutes decline yesterday. This morning we updated the charts to a firm Minor 4 at yesterday’s low, after a more complex than expected pullback. Without any more surprises Minor 5 should be underway. There are several short term resistance levels ahead, any of which could end this uptrend SPX: 1804, 1810, 1818, 1826 and 1828. The high so far is SPX 1802 and we closed at 1796 today.

Short term support remains at the 1779 pivot and SPX 1746, with resistance at SPX 1804-1810, SPX 1818 and the 1828 pivot. Short term momentum rose from quite oversold to nearly overbought today. The short term OEW charts are again positive with the reversal level now SPX 1790. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: bull market


About tony caldaro

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148 Responses to thursday update

  1. rc1269 says:

    minor 5 = minor 1 @ 1804.43
    HOD: 1804.71

  2. llerias7 says:

    I will exit longs only at 1850! 1850 is the number!

  3. RDC says:

    Markets have topped. Look for some selling/profit taking next week.

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