Tuesday update

SHORT TERM: gap down opening, DOW -128

Overnight the Asian markets gained 0.6%. Europe opened lower and lost 0.5%. US index futures were lower overnight. At 8:30 Building permits were reported higher: 1090k v 1053k, but Housing starts were reported lower: 897k v 1065k. The market gapped down at the open to SPX 2072, found support at 2068 and tried to rally. By 10:30 the market had only bounced to SPX 2073, then headed lower. After hitting 2065 by 11:30 the market then started to rally. By 2pm the SPX hit 2077, pulled back to 2072 just before 3pm, then rallied to 2079, just before a 2074 close.

For the day the SPX/DOW were -0.50%, and the NDX/NAZ were +0.15%. Bonds gained 10 ticks, Crude lost 75 cents, Gold slid $6, and the USD was lower. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: the FED concludes its FOMC meeting with a press conference.

The market gapped down at the opening for the second time in a row after a 20+ point rally. Today’s opening was the fourth gap opening in a row: two up, two down. By 11:30 the SPX hit 2065 and then rallied to 2079 in the last hour of trading. It looks like the market has done a 1-2, 1-2 up from SPX 2040 (2066-2041-2081-2065—). Expecting volatility after the FMOC statement, then during the press conference. Should be another wild day. Short term support is at the 2070 pivot and SPX 2051, with resistance at the 2085 pivot and SPX 2104. Short term momentum dropped during today’s pullback, then turned higher. Best to your FOMC trading!

MEDIUM TERM: uptrend

LONG TERM: bull market

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

About tony caldaro

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169 Responses to Tuesday update

  1. arthurk024 says:

    Sorry to waste space, but I needed to test account.

  2. As said, yesterday (magic ball!!), DAX in SELL, FTSE should turn from 6980 (I went wrong bit, you will notice thrice FTSE attempted to break 6884 [level I mentioned]), when it broke that level it went to 6997.

    FTSE should turn sell within next 2 trading days. SPX should be shorted at present level, be aware due to follow through, for next two day, SPX will remain at around this level, so if you are not in hurry, wait Thursday evening and short.

  3. buddyglove says:

    Well done to all longs, I won’t post anymore long set-ups as it seems you guys/gals don’t need them and I’m probably just posting the bleedin’ obvious anyway.
    However Commodities look good to me here, imho.
    GSCI daily

  4. uncle10 says:

    Hey Dark. curious if you still long vol and short IBB? thx

  5. High fives all round at the Fed Easter Ball this year.

  6. johnnymagicmoney says:

    I bought a ton of UPRO when it was near its bottom today before Janet did her typical i am a liquidity whore statement……………..even this move is much moe than i expected! wow!! monnnnnney!

  7. Lee X says:

    Hey Uncle😉
    L1 Ur a poet and u know it
    gto Uv been el fuego amigo

    Some very entertaining posts today🙂

  8. simpleiam says:

    Ok, that’s 40+ spx pts. straight up. Think it’s about to whack it’s head.
    That was fun! TTYL.

  9. tommyboys says:

    RUT busts a new high…

  10. wave 1 at 2039 wave 2 a 2100 and now comes the unsuspected wave 3 down

    • simpleiam says:

      Got the wrong direction newbie… Been in the wrong direction for a couple years now. GL to You anyway. Dream BIG!

      • jparkins10 says:

        I wouldn’t be so sure, probably a touch more upside over the next day or so, but I think we’ll see SPX 2020-50 in the next few weeks, before we reach up to 2200’s+

  11. GYN LAB says:

    A healthy pullback to test the neckline at the 2085 pivot before 2100+ would be best

  12. ko68 says:

    Great call Tony!
    What du you think about the XLE/OIH, bottomed out?

Comments are closed.