monday update

SHORT TERM: pullback monday, DOW -26

Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.2%. US index futures were lower overnight, and the market opened three points below Friday’s SPX 2008 close. In the opening minutes the market ticked up to SPX 2007, then pulled back to 2001 by 10:30. After another rally to SPX 2006 by 11:30, the market pulled back to 1996 by 2pm. Then the market started to rally again. At 3pm Consumer credit was reported higher: $26.0 bn v $17.3 bn. At 3:30 the SPX hit 2003, then dipped to close at 2002.

For the day the SPX/DOW were -0.25%, and the NDX/NAZ were +0.20%. Bonds lost 5 ticks, Crude slipped 30 cents, Gold dropped $13, and the USD continued its rally. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Over the weekend long term Investor sentiment was reported lower: 57.3% v 57.5%. Tomorrow: Senate testimony from FED governor Tarullo at 10am.

The market opened lower today, bounced around near Friday’s high, and then pulled back to SPX 1996. Thus far it looks like the market is starting some sort of pullback from the SPX 2011 high: 1990-2008-1996 … This is the first time, since August 15th, that the market has had two notable pullbacks without making a higher high. Which was the only time that occurred during this entire uptrend. The market did hit short term oversold this morning, and has now bounced back to neutral. Let’s see what it does with this activity tomorrow. Short term support is at SPX 1990 and the 1973 pivot, with resistance at SPX 2011 and the 2019 pivot. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: bull market


About tony caldaro

This entry was posted in Updates and tagged , , , . Bookmark the permalink.

190 Responses to monday update

  1. pcskier says:

    $compq is in the pivot right now, top tick at hand, maybe.

  2. mrgreen2010 says: <<<< This means go short…these bastards are always looking for "muppets" to unload inventory to. I am looking to add some longer term (2+ Month) puts this week on any remainiing strength maybe some DIA and a few Individual equities TBD (AAPL…AMZN…NFLX…LNKD?). IV research tonight. Holding my 10 Sept 12 97.5 QQQ puts bought at 0.07 and added 8 of the 96.0 @ 0.03 just in case we get a real downdraft this week. Bought 12Nov.22 MU 20 puts @ 0.07 this morning. We will see if it $200 well spent. Goldman tell you to buy with a 2050 price target is a good sign for existing bears. I remebre stoppler on currencies..fade his recs everytime…100% fade accuracy. Also note key reversals in many currancy pairs today…notably USD/JPY. Should contribute to a followthrough tommorrow…although nothing is for sure except death and fed money creation.

  3. Hello Mr Caldaro,
    Can we consider that primary III tops are in?? are we now in primary IV that we are waiting??
    should we have the big correction (bigger than 2011)
    many thanks
    Best regards

Comments are closed.