Friday update

SHORT TERM: gap up and go options expiration, DOW +169

Overnight the Asian markets lost 0.2%. Europe opened higher and gained 1.0%. US index futures were higher overnight, and the market gapped up to SPX 2098 at the open. The SPX had closed at 2089 yesterday. The rally continued higher with only a three point pullback into the afternoon. At noon the FED released this statement: At 1:30 the SPX hit 2114, then started to pullback. By 3:30 the SPX had reached 2108. Then a bounce to SPX 2112 in the last few minutes led to a close at 2108.

For the day the SPX/DOW gained 0.90%, and the NDX/NAZ gained 0.70%. Bonds gained 16 ticks, Crude rose 85 cents, Gold added $12, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Last night the FED reported an increase in the Monetary base: $4.144tn v $3.807tn. Today the WLEI was reported higher: 46.3% v 46.0%.

The market gapped up at the open for the seventh gap opening in a row. The market opened one point above yesterday’s high and continued to rally into the afternoon. Since SPX 2081 was never approached the impulsive pattern upwards continues. No change in the short term count, as we see a Minute i-ii, and a 1-2-3 of Minute iii still underway. Also of note: the SPX closed above 2100, the DOW above 18,000 and the NAZ above 5,000. Short term support now rises to SPX 2107 and the 2085 pivot, with resistance at SPX 2120 and the 2131 pivot. Short term momentum hit quite overbought today before pulling back. Best to your weekend!

MEDIUM TERM: uptrend

LONG TERM: bull market


About tony caldaro

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18 Responses to Friday update

  1. Not being EW educated I ask “Is it time now for an SPX pull-back now, how deep? Thanks!

  2. wavediver says:

    Tony, can we expect micro-4 to be the next 20 point pullback?

  3. M1 says:

    ….and the NAZ hit new 14 years highs !!!

    • M1 says:

      According to stockcharts 2132.52 was the NAZ all time highs in march of 2000
      Only 90.38 points far from todays highs

  4. Page says:

    Thanks Tony. Have a nice weekend.

  5. bhuggs52 says:

    Thanks much Tony. It was a good week to be long and I look forward to your weekend update. Meanwhile, like MJT, I’m seeing the same fives waves up–FWIW.

  6. bhupal777 says:

    What a Beatiful day. Follow through was delayed but came eventually.
    I was wrong in assessing the market direction but did not do any thing stupid and did not exited from longs. Just let the original trade plan and stops play out. My portfolio is up a whopping amount today. Good Luck all.

    Thanks Tony for being so patient with a rough crowd like me and Srihas. Rabbittrader and etc….Looking forward for the the week end update.

  7. mjtplayer says:

    Thanks Tony!

    From your minute ii low at 2,041 it looks like a clear 5-up to today’s high to complete minute iii – no?

  8. mike7x says:

    Thanks Tony. Looks like a June rate hike after all. But…what year?

  9. torehund says:

    …happy weekend to Tony and across the board

Comments are closed.