SHORT TERM: gap down then reversal, DOW +21
Overnight the Asian markets gained 0.1%. Europe opened lower but gained 0.1%. US index futures were lower overnight and the market gapped down to SPX 1873 at the open. The SPX had closed at 1878 on Friday. In the opening minutes the SPX dipped to 1872 and then began to rally. The rally continued throughout the day with only three to four point pullbacks along the way. Heading into the close the SPX hit 1886, then dipped to close at 1885.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were +0.80%. Bonds lost 3 ticks, Crude gained 55 cents, Gold added $1, and the USD was lower. Medium term support remains at the 1869 and 1941 pivots, with resistance at the 1901 and 1929 pivots. Nothing on the economic agenda tomorrow.
The market gapped down at the open, then quickly reversed closing the gap before 10am. After that the market rallied to the infamous SPX 1884 area. An area which has been visited consistently since early March. Should the market continue to follow the fractal of the last uptrend, a retest of SPX 1860-ish is next. Should the market follow the count we have posted we should see new highs soon, as sentiment in the NDX/NAZ appears to be improving. Turnaround Tuesday is next.
Short term support is at the 1869 pivot and SPX 1860, with resistance at the 1901 and 1929 pivots. Short term momentum is displaying a very slight negative divergence. The short term OEW charts are still positive, with the reversal level now SPX 1880. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market
the ELLIOTT WAVE lives on 
There have some crazy $%&*^ happenings in the market today, it is big… whatever that is… to empty too fast
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as promised your VIX smash and es ramp on the way. alot of noise but new highs by friday on S&P coming its what the fed wants
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read the book, seen the movie. This time it has a different ending. Usually the last 30 minutes the ramp up the close. They started to early, which means it will close at its lows in my opinion
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nope 2013 playbook.
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Don’t know what kind of people hope against hope for a market crash. Some many get hurt when these things happen. Something ain’t right with the people praying for a crash. Karma will get ya!
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STS: the gain of one, outweighs the loss of many
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If Karma exists the Fed has a lot of things coming to it. The economy sucks yet they put on this false sense of reality by goosing markets. Works both ways Tommyboy, Nobody is hoping people get hurt but people are hurting and The fed is telling you everything is ok because the S&P is at all times highs.
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Information received since the Federal Open Market Committee met in March indicates that growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions. Labor market indicators were mixed but on balance showed further improvement. The unemployment rate, however, remains elevated. Household spending appears to be rising more quickly. Business fixed investment edged down, while the recovery in the housing sector remained slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has been running below the Committee’s longer-run objective, but longer-term inflation expectations have remained stable.
http://www.federalreserve.gov/newsevents/press/monetary/20140430a.htm
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Also tommyboy by the way you talk I can all but guess your name goes on the back of the check but never on the front. If you name was on the front of the check you would see how real businesses are struggling.
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TB we might not agree on a lot, but i’m with you on this one. well said. thx
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Economic growth has picked up? really where in housing or retail? weather? Canada has weather to. households are spending? yep showed up in todays retail numbers.
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http://research.stlouisfed.org/fred2/series/GDP
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TB, very few people actually want the market to crash. Traders trade and if you are short the market you want it to go down… the more the better if you are short….. I don’t feel karma is going to get me because I trade the market.
Besides, your thinking that it is bad/many will get hurt if the market crashes may seem on the surface to be a true statement but may not be” true” in “reality”. ie- if the market/economy does really bad and it finally brings about necessary reforms/changes that are needed then what seemed bad is actually good.
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Same charts, I’ve been sharing … Still short here. Good luck all!
INDU: http://stockcharts.com/h-sc/ui?s=$INDU&p=W&st=1999-01-01&en=today&id=p04571646171&a=349553078&listNum=7
RUSSELL: http://stockcharts.com/h-sc/ui?s=$RUT&p=M&st=1973-01-01&en=(today)&id=p98570180905&a=319348397&listNum=7
COMPQ: http://stockcharts.com/h-sc/ui?s=$COMPQ&p=60&yr=0&mn=6&dy=0&id=p31684324037&a=347539933&listNum=7
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Nice Jedi. However, we are getting really positive RSI divergence now in the 60 min Dow chart. But I don`t think that will help the bulls…
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indexes getting wedgy.
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Some good calls by the magic man and others
If I don’t see ya’s again this week have a great holiday and be nice to each other.
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Lee, Hope to see you again– its only tues.. 😉 You too man!
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Have a nice Holiday Lee. Enjoy some tasty buds, Dude. 😉
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You left at the perfect time, too hot to be involved?
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The DOW is hanging on for dear life, testing the 16,350 area and bottom of the ED. A break lower from here and it could be lights out
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I don’t remember a time when everyone was so confident……
We have always been a confident bunch, but wow….
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uncle,
People can be anything they want to be on “Halloween”
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