Friday update

SHORT TERM: gap up opening again, DOW +212

Overnight the Asian markets gained 0.7%. Europe opened higher and rallied 2.5%. US index futures were much higher overnight, and the market gapped up to SPX 2072 at the open. The market had closed at SPX 2051 yesterday. In the opening minutes the SPX hit 2076, then started to pullback. At 10am Wholesale inventories were reported higher: +0.8% v +0.4%. Around 10:30 the SPX hit 2067, and then began to rally again. At 11:30 the SPX hit 2079, then pulled back to 2074 by 12:30. At that time FED chair Yellen’s speech: After hitting SPX 2073 by 2pm the market rallied to 2081 by 3:30, then dipped to close at 2077.

For the day the SPX/DOW gained 1.20%, and the NDX/NAZ gained 1.55%. Bonds lost 26 ticks, Crude slipped 5 cents, Gold added $1, and the USD was lower. Medium term support rises to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Today the WLEI was reported lower: 51.2% v 51.4%.

The market gapped up at the open for the second day in a row. This time, however, the market did not retrace most the of the gap up. In fact, it pulled back, and then rallied to a higher high. Thus far we have observed three waves up from the SPX 2045 low: 2074-2051-2081 so far, with a small subdivision of the third wave: 2076-2067-2081. With lots of economic events next week the market could get the catalysts to move higher. Short term support is at the 2070 pivot and SPX 2051, with resistance at the 2085 and 2131 pivots. Short term momentum hit slightly overbought and ended there. Best to your weekend!

MEDIUM TERM: uptrend trying to get underway

LONG TERM: bull market


About tony caldaro

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37 Responses to Friday update

  1. magnus1234 says:

    If one support the OXI in Grece buy Greece Bonds. Pay-up or shut-up. But talk has been cheap the last couple of weeks. I support Germany 100%. And when the fog is clearing i might even buy ASE.

  2. fotis2 says:

    Greek Parliament overwhelming majority aproval of reform measures(same reforms people voted OXI) now its up to the Gangsters err Banksters… clear as mud to me but I suppose that’s Politics.

  3. Hi Tony,
    IMO Today was a great day to get out. We are far from the low. Have a great Weekend Tony!
    Thank you you so much for what you do.

  4. M1 says:

    Thanks Tony !!
    Have a nice weekend

  5. fionamargaret says:

    Thanks Tony and Good Weekend All.

  6. The NYSE A-D line had a nice positive plurality of +1856 to go along with the broad increases in the price indexes today. This is the best-looking all-around rally in several months. The weekly A-D is trying to establish a bottom at the early March levels of 389K although the daily chart did fall below it’s corresponding March 10 lows. I can’t see far back enough on the daily chart to see what the next support level would be for the daily chart, but I know some of you have paid accounts that probably do offer longer time views. Maybe one of you could share that.

  7. I mistakenly posted this response to Sheldon Golomb on Thursday’s site:

    I would like to hold the country of Outer Mongolia accountable for the crimes of Genghis Khan and the country of Turkmenistan accountable for the atrocities of Tamerlane. More seriously, Germany and ethnic Germans of Eastern Europe did suffer a terrible punishment during and after WWII, much of which hasn’t been publicized extensively. The Czechs, in particular, perpetrated atrocities on ethnic Germans still living there at the end of WWII. Edvard Benes, the leader of Czechoslovakia, was particularly active in encouraging these barbarities, but history still regards him as a great and benevolent political figure. West Germany and Germany have paid many types of reparations to different countries and groups. Somehow, from what I’ve heard, East Germany seems to have been exempt from those processes.
    Postwar Japan does not seem to have been held too accountable for it’s 1930-1940’s atrocities. We have heard heard a great deal about Dachau, but little about the Japanese facility near Harbing, Manchuria which did much the same kinds of research except on a vastly larger scale. That included setting off bubonic plague bombs near Chinese towns to determine the radius of infectivity. The US agreed to let the Japanese general Shiro Ishii and his researchers off Scott-free in exchange for taking possession of his research results, which he had hidden. The Soviets, however, did hold war crimes trials for the ones that they caught. Wikipedia says that 30% of the victims were Russian, which is odd since Russia and Japan were neutral towards each other until the very late days of the Pacific War.
    The Prison Ship Martyrs Monument at Fort Greene Park in Brooklyn, NY tells a tale of unbelievable mistreatment of American POWS during the Revolutionary War which was as bad as the worst Nazi concentration camp. I believe the British military did at least hang the commandant of the prison ships after the end of the war. In point of fact, the more history I read, the more I discover how many different peoples and nations are guilty of stunningly brutal crimes.

  8. torehund says:

    Hilary is no match for Trumph, latter is calling a spade a spade, loosing by the millions in contracts unselfishly advocating his uncorrupted views🙂🙂 And he has done pretty well considering he has been in a bear market popularity wise since inception. I like to pick bottoms and for Donald it just CAN NOT be worse, haha. And MAYBE greed will be good…for a while longer..

    Good weekend, Tony and Crew.

  9. mjtplayer says:

    Greek Parliament was supposed to vote on the reform measures at 7pm local time (noon est). Here we are at 6pm est (1am local time) and no vote; Greece now saying they’ll vote at 3am (local time) – which is 8pm est tonight, 2 hrs from now.

    3am?? WTF? Something is fishy, tells me they don’t have the votes and have been delaying the vote so that they can “horse-trade” to try and get the votes. We’ll see….

    Just leave the EU, default on the debt and immediately start printing Drachma and be done with it.

  10. Roxie97 says:

    China is not a speed bump – that was serious selling and technical damage – I have FXI bouncing to 46 – 48 then it should resume selling down to 32 to start. Eventually I have FXI going to 9 before this is over. US equities should follow the move down FWIW

  11. gtoptions says:

    Thanks Tony
    Good weekend all. Opa!

  12. NEWBIE says:

    Top is in now down to 2040 or 1980

  13. JeffMilano says:

    Thank you Tony. Best wishes to BuddyGlove.

  14. mike7x says:

    Thanks Tony. Can we get Greece outta the way by Monday?

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