Tuesday update

SHORT TERM: another turnaround Tuesday, DOW +190

Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.9%. US index futures were higher overnight, and at 9am Case-Shiller was reported flat: +4.9% v +4.9%. The market gapped up at the open to SPX 2078, but immediately began to pullback. At 10am Consumer confidence was reported lower: 90.9 v 101.4. Does anyone think consumer confidence dropped 10% in one month? At 10:30 the market hit SPX 2068 and then began to rally. With only 2 point pullbacks along the way, the SPX reached 2096 by 2:30. Then a dip into the close ended the day at SPX 2093.

For the day the SPX/DOW were +1.15%, and the NDX/NAZ were +0.95%. Bonds lost 7 ticks, Crude gained 30 cents, Gold added $1, and the USD was higher. Medium term support jumps to the 2085 and 2070 pivots, with resistance now at the 2131 and 2198 pivots. Tomorrow: Pending home sales at 10am, then the FOMC meeting concludes with a statement at 2pm.

The market gapped up at the open today, nearly retraced the entire gap, then rallied through the 2070 and 2085 pivots by the afternoon. After eight straight up days from the July low, the market dropped for five straight days. Today it reversed that decline by taking out yesterday’s SPX 2076 high at the open. We continue to count the 8 day rally(2045-2133) as a corrective three waves. And, the 5 day 69 point decline (2133-2064) was also three waves: 2110-2119-2064. Corrective activity continues. Two possible resistance levels for the current rally are (SPX 2099) 50% and (SPX 2107) 62% retracements. After that comes the 2131 pivot yet again. Short term support rises to the 2085 and 2070 pivots, with resistance at SPX 2099, SPX 2107 and the 2131 pivot. Short term momentum hit extremely overbought today. Best to your trading!

MEDIUM TERM: uptrend under pressure

LONG TERM: bull market

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

About tony caldaro

Investor
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157 Responses to Tuesday update

  1. gtoptions says:

    Thanks Tony
    5 waves is all it takes to kickstart the uptrend. 😉
    We’ll see, I just can’t shake the Bull until the SPX 2040 gets taken out.

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  2. zepfan123 says:

    Looks like Whole Foods and Wynn have big earnings misses. Mmmmmmmmmmmmmmm!

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  3. zepfan123 says:

    FB beat expectations but is down about $4 in AH. So far anyway. Lots of folks thought it might pull an AMZN and go up 20% on the report and bought very expensiveweekly FB calls.. Ya never know.

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  4. close at the high of the days and let face book earnings jack it up again tomorrow. New highs. all is good in the world I guess

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  5. wavediver says:

    Blackjack,
    Are you counting 2108->2000 as wave 4 and 2000->2011 as wave 5?

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  6. GYN LAB says:

    High at 2111 just now – if b ends here, then c=a points to 2042, inch perfect flat and also bang on the .618 of 1981-2135 diagonal. Or is this just a wishful thinking…

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