Thursday update

SHORT TERM: another gap up opening. DOW +70

Overnight the Asian markets gained 0.7%. Europe opened higher and gained 1.2%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported lower: 281k v 297k. The market gapped up at the open hitting SPX 2119, dipped a few points, and then moved higher. The SPX had closed at 2107 yesterday. At 10am the Philly FED was reported lower: 5.7 v 15.2, but the NAHB was reported at a 10-year high: 60 v 59. The market continued higher throughout the day, with only three point dips, hitting SPX 2124 and closing there.

For the day the SPX/DOW gained 0.60%, and the NDX/NAZ gained 1.35%. Bonds lost 5 ticks, Crude dropped 40 cents, Gold slid $4, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Options expiration Friday, we have Building permits, Housing starts and the CPI at 8:30; then Consumer sentiment at 10am.

The market gapped up again for the second day this week, and the fourth time since this rally began a week ago Wednesday. The market opened at SPX 2119, jumping over yesterday’s 2114 high, and hit 2124 in the last hour of trading. We continue to count three waves up from last week’s SPX 2045 low: 2074-2051-2124 so far. The third wave up can now be counted as a five wave structure: 2076-2067-2114-2102-2124. This advance is certainly looking impulsive. The US indices and some European indices have confirmed uptrends. Looks like Intermediate wave iii is underway. Short term support is now at SPX 2102 and the 2085 pivot, with resistance at the 2131 and 2198 pivots. Short term momentum ended the day quite overbought. Best to your Opex trading!

MEDIUM TERM: uptrend

LONG TERM: bull market


About tony caldaro

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145 Responses to Thursday update

  1. Dex T says:

    Earlier I posted on China’s announcement of their Gold holdings. I just came across this article claiming the China has far higher reserves.

    China finally says how much gold it has, but nobody believes it

    “The latest total is about half what the market thought it was. The market was generally expecting a total of well over 3,000 metric tons, according to Brien Lundin, editor of Gold Newsletter.”

    “There is much evidence that [China’s] holdings are actually at those higher levels, which makes one wonder why they would feel compelled to understate the total now,” he said.

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