Monday update

SHORT TERM: gap up then pullback, DOW -42

Overnight the Asian markets ended mixed. Europe opened higher and gained 1.3%. US index futures were higher overnight, and the market gapped up to SPX 2124 at the open. The SPX had closed at 2118 on Friday. By 10am the SPX hit a new high at 2126, and then started to pullback. At 1:30 the SPX hit 2111, then went into a trading range for a couple of hours before hitting 2107 just before a 2109 close.

For the day the SPX/DOW were -0.30%, and the NDX/NAZ were -0.45%. Bonds lost 2 ticks, Crude slipped 30 cents, Gold rallied $23, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Case-Shiller at 9am, then Consumer confidence and Senate testimony from FED director Van Der Weide at 10am.

The market gapped up at the open today hitting a new all time high at SPX 2126. Then it appears when the Biotechs went into profit taking mode (-4.2%), after a 50% advance in 6 months, the general market started to pullback. Thus far, from the recent SPX 2072 Minute wave ii low, we have observed what appears to be four waves: 2110-2091-2126-2107. With today’s decline to SPX 2107 we now have an overlap, and the rally is beginning to look a bit sloppy. As a result we are raising our caution level to the 2085 pivot range. Short term support is at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Short term momentum declined to oversold after a negative divergence. Best to your Tuesday trading!

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

About tony caldaro

Investor
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132 Responses to Monday update

  1. berniebaruch says:

    Baltimore burning to the ground but money from overseas flowing into the safe haven of the United States. VIX sucked out like it had one of those funny talking English guys vacuum cleaners on it

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  2. pooch77 says:

    Oh Oh TWTR dropping like a rock into close,leaked earnings?

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  3. magnus1234 says:

    The count looks little skewed IMHO. Many overlaps. Looking forward to Tonys update. I’m lost at the moment.

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  4. I feel it in my bones. SP going higher. Yellen Yellen. Yes Yellen is coming to down Buy Buy Buy..

    Go pro and Twitter will be up 12 percent after hours with avg earnings, why Yellen Yellen. there will be a one billion order to the buy side on the close, Yellen. I feel it.New closing high today in anticaption.

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  5. H D says:

    There is news and data on deck. SPX 2115 is already on the chart though. GL

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    • CB says:

      it looks like we now need to test that down-sloping TL to get some +div, right? We’re stuck between the two without any +div yet..
      What do you think, HD, beyond “2115 already on the chart”. Thanks 🙂

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      • H D says:

        This time is different? 😉 2105 if 2110 goes

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        • CB says:

          Thanks HD. Will keep that in mind. Your numbers are magic 🙂 I am still secretly hoping for a full retest of 2094 if they want my money. Seems like we just need another Iran incident today to establish a solid double bottom.. Whatever it takes, like Mario likes to say 😉

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          • Yellen, Yellen. She is the 21st century rock star. Crowd goes wild every time she speaks. Even goes crazy in anticipation of her speaking. Yellen Yellen.

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          • CB says:

            lol..it’s still early.. ..today she’s got (G)irl (S)couts working for her.. cleaning up on aisle 5..

            Btw, If anyone has a Yellen GIF,, we’d like to see it 😛

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        • CB says:

          OK, today is not THAT day. Btw, if you guys take a look at ur 60 min charts, there was a similar tradable dbl btm . It took 3 days, from apr 14 (2083 low) to apr 17 (re-test @2072 with +D). I am waiting for a similar set-up. It’s going to happen. Not a matter of if, but when. The market has an excellent memory. I do too. The market can go higher in the meantime. I don’t like buying bullchit, though 😉 GL everyone.

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  6. fotis2 says:

    Can anyone count any waves? up to now straight up 22 points

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  7. lunker1 says:

    21 up to 2116

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  8. IHS patterns some time lead to a HS setups, so keep your eye on the ball

    http://tos.mx/GUWqQC

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