Wednesday update

SHORT TERM: pullback continues, DOW -28

Overnight the Asian markets lost 0.2%. Europe opened higher and gained 1.8%. US index futures were higher overnight, and the market opened three points above yesterday’s SPX 2044 close. By 10am the SPX had drifted up to 2050, then hit 2041 around 11am. After a bounce to SPX 2049, the SPX hit 2041 again just before 2pm. Then after a bounce to SPX 2048 the market hit 2040 and closed there.

For the day the SPX/DOW were -0.15%, and the NDX/NAZ were -0.40%. Bonds gained 3 ticks, Crude was flat, Gold dropped $7, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2170 and 2185 pivots. Tomorrow: weekly Jobless claims, Retail sales and Export/Import prices at 8:30, then Business inventories at 10am.

The market opened a few points higher today, bounced to SPX 2050, then declined to 2041. After that it stayed in that trading range for the rest of the day, until the last hour when the SPX hit 2040. With today’s slightly lower low, and no substantial rally, the pullback continues. The DOW is still displaying a nice hourly positive divergence, but has yet to rally as well. Not much to add to yesterday’s update. Except that the market needs to rally above SPX 2060 to suggest the pullback is over. Short term support is at SPX 2034 and the 2019 pivot, with resistance at SPX 2051 and the 2070 pivot. Short term momentum rose during the day and finished at oversold. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: bull market


About tony caldaro

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