wednesday update

SHORT TERM: gap down opening, DOW -3

Overnight the Asian markets gained 0.5%. US index futures were lower overnight, and the market gapped down to SPX 2032. The market had closed at SPX 2040 yesterday. At 10am Wholesale inventories were reported higher: +0.3% v +0.7%. The market rallied to SPX 2037 by 10:30, pulled back to 2032 by 11am, and then moved higher. Around 2:30 the market could not break through SPX 2040, then pulled back to 2035 by 3pm, before bouncing to 2038 by the close.

For the day the SPX/DOW were -0.05%, and the NDX/NAZ were +0.25%. Bonds gained 6 ticks, Crude dropped $1.15, Gold slid $5, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: weekly Jobless claims at 8:30, a speech by FED chair Yellen at 12:45, then the Budget deficit at 2pm.

The market gapped down at the open today, made a low at SPX 2032, retested that low, then tried to move higher but couldn’t reach yesterday’s 2041 high. For those counting, today was only the second day, during the entire uptrend, that the SPX made a lower low than the day before. Still a good uptrend, but it is not as strong as it was, when it made the first daily reversal on the second trading day of November. The February uptrend, btw, also had a spike up beginning, then went into drift higher mode until it made its high. Same goes for the June 2013 uptrend. Short term support remains at the 2019 pivot and SPX 2000, with resistance at SPX 2049 and the 2070 pivot. Short term momentum nearly hit oversold today and momentum ended above neutral. 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.

172 Responses to wednesday update

  1. fotis2 says:

    Starting to look wc down

  2. FiveStars says:

    Absolutely no reason to short the market at this time of the year, every bad news will be shrugged off so buy on every pullback. I am looking for SPX 2150 before any significant correction.
    Buy Black Gold (Oil) and Nat Gas.

  3. Peter Sliney says:

    You do have to appreciate a good bull head fake.

  4. johnnymagicmoney says:

    Fact Cisco lowered guidance
    Fact Walmart lowered guidance
    Fact Cisco up 2.25%
    Fact Walmart up 4.5%
    Fact – People are stupid and that is why the market is barely down because people are stupid
    Fact – People will look even dumber later when they are perplexed as to why the market drops hard

  5. lbhkinqa says:

    Would it be fair to say that a rally from here confirms a 7th wave up and is therefore medium term bearish, but a correction confirms 5 waves up, and is therefore medium term bullish?

  6. all indices daily charts are flashing some very promising doji reversals at the moment. we’ll see just how well the doji reversal hold at the close today

  7. Gary Lewis says:

    Here comes the end of the day ramp up, starting early.

  8. afarsid says:

    I see some small scale impulsive down wave on SPX? Pretty new to EWT so correct me if I’m wrong

  9. klopharmd says:

    Vix up 10% spy down .3%.

  10. JeffMilano says:

    Rabbit, here comes the correction, maybe. My system will generate a sell. Oh! did the fat lady sing with elvis, today? Well, great call, it may be going down. Fantastic!! You problably will jam it up, tonight! But this correction may be shallow one. We’ll see. Best, jeff

  11. Walter Crane says:

    TVIX up very nicely so far the plan is working, AGAIN……. Rabbit, where are we meeting? Somewhere warm?

  12. johnnymagicmoney says:

    also…………. wasn’t it an intraday reversal the begining of the big drop in October??

Comments are closed.