friday update

SHORT TERM: market approaches new highs, DOW +63

Last night the FED released the following: http://www.federalreserve.gov/newsevents/press/bcreg/20140522a.htm.  Overnight the Asian markets gained 0.8%. Europe opened lower but gained 0.2%. US index futures were higher overnight. The market opened two points above yesterday’s SPX 1892 close, and continued to rise. Throughout the day the climb continued until the market hit SPX 1901 and closed there.

For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.75%. Bonds gained 6 ticks, Crude added 60 cents, Gold slipped $2, and the USD was higher. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Last night the FED reported an increase in the M1-multiplier: 0.712 v 0.708. Today the WLEI was reported higher: 55.0% v 54.9%.

The market opened higher today and just kept on rising with only 2 point pullbacks along the way. This would have been impressive if it was not a Friday before a three day weekend. Nevertheless, the SPX came within one point of its all time high. And, the much maligned and short sellers favorite NDX confirmed an uptrend. The only one of the four major indices not in a confirmed uptrend is the NAZ. And, that should occur next week. We will be detailing two potential Major wave 5 counts this weekend. Both have been posted on the SPX/DOW charts for a few days now.

Short term support is at SPX 1891 and the 1869 pivot, with resistance at the 1901 and 1929 pivots. Short term momentum turned higher after yesterday’s dip and ended the week quite overbought. The short term OEW charts remain positive with the reversal level now SPX 1896. Best to your three day weekend!

MEDIUM TERM: uptrend

LONG TERM: bull market

CHARTS: http://stockcharts.com/public/1269446/tenpp

About tony caldaro

Investor
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51 Responses to friday update

  1. winslow80 says:

    Friday evening insights from some of my favorite stock market strategists:

    He who is prudent and lies in wait for an enemy who is not will be victorious. Sun Tzu

    Whosoever desires constant success must change his conduct with the times. Niccolo Machiavelli

    It is even better to act quickly and err than to hesitate until the time of action is past. Carl von Clausewitz

    Success depends upon previous preparation, and without such preparation there is sure to be failure. Confucius

    Do not be anxious about tomorrow, for tomorrow will be anxious for itself. Let the day’s own trouble be sufficient for the day. Jesus Christ

    It is better to conquer yourself than to win a thousand battles. Then the victory is yours. It cannot be taken from you, not by angels or by demons, heaven or hell. Buddha

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  2. Every time I look at this chart, I say out loud, “Good grief! Look at that melt-up within the highest, tippy-top trendline.” Amazing. Especially with employment at 6.5% and GDP < 3% during this entire run. QE — the market's heroin.
    SPX MONTHLY: http://stockcharts.com/h-sc/ui?s=$SPX&p=M&st=1999-01-01&en=(today)&id=p04078160810&a=315140600&listNum=7
    SPX WEEKLY: http://stockcharts.com/h-sc/ui?s=$SPX&p=M&st=1980-01-01&en=(today)&id=p06351701823&a=339006802&listNum=7

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  3. lunker1 says:

    SPY target 199

    Q’s target 99

    call it 2000/100

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  4. simpleiam says:

    Cramer talking about lots of short-covering today. Makes next week’s forecast even MORE interesting! Simplify!

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    • torehund says:

      Cramer is one of the most intense pundits around and responsible for the manipulative scam that ripped of 1000 of shareholders in DNDN when a barking dow pluss some ill and untrue utters tanked the Stock from 22 usd to 11 in a couuple of minutes.
      Its a conclomerate of News media that trough propaganda drives Stock in one direction,mostly Down. The Street is the worst, followed by”objeckive sites” Seeking alpha.
      Its a site I wil dear read when I gel my Ahlzheimer. Its a site stealing from the common man, and thats not very Rodinhoodish. For others it may just be fun watching, but costl as Your sentiment wil be colorad by it, inadvertently. M Armstrong and this blog is a much better combo.

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      • torehund says:

        type error, not barking dow but a barking ((at the moment apparently a mad DOG), plus crying Children an tin cans crashing.

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      • simpleiam says:

        Hi tore. Not to worry, I don’t color easily and consider Cramer to be a ‘cheerleader’ for unknown purposes. Simplify!

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      • I would like to hear more explanation about your sentiment towards Seeking Alpha. It seems to have a very open model concerning what opinions can be expressed.

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      • torehund says:

        Georg, initially I thought that Seeking Alpha was an arena for independent thinking, However it has gradually become tilted towards small articles that serves a certain purpose. Not all articles are made that way, but…Recent example is articles on Dry bulk and their recent earnings. Unbalanced views that strongly tilts sentiment in just one direction.
        These days a higher concentration of good articles are to be found at investing.com.

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