Wednesday update

SHORT TERM: gap up opening, DOW -10

Overnight the Asian markets gained 0.5%. Europe opened higher and gained 1.4%. US index futures were higher overnight as well. At 8:15 the ADP was reported lower: 185k v 237k, and at 8:30 the Trade deficit was reported higher: -$43.8bn v -$41.9bn. The market gapped up at the open to SPX 2103, it had closed at 2093 yesterday. The rally continued until about 10:30 when the SPX hit 2113, and then it started to pullback. At 10am ISM services were reported higher: 60.3 v 56.0. The pullback continued into the afternoon when the SPX hit 2097, and tried to rally. Just past 3pm the SPX hit 2104, then pulled back to close at 2100.

For the day the SPX/DOW were mixed, and the NDX/NAZ were 0.70%. Bonds lost 17 ticks, Crude slid 50 cents, Gold slipped $4, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: weekly Jobless claims at 8:30.

The market gapped up at the open today, rallied to SPX 2113, and then pulled back. While we thought the market was rolling over yesterday after hitting SPX 2103. It appears it had another rally left in it to go back and test Friday’s SPX 2114 high. Since that high was not breached we continue to count the activity from SPX 2114 as part of Minute wave C. Details were posted yesterday. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2114 and the 2131 pivot. Short term momentum hit overbought today then declined to neutral. Best to your trading!

MEDIUM TERM: choppy uptrend continues

LONG TERM: bull market


About tony caldaro

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157 Responses to Wednesday update

  1. nardobeme says:

    I suggest tomorrow might be a real doozy, and a touchdown in the 2050 area might be feasible.

  2. H D says:

    Not many buyers at the lows. little 10 handle rally back to pivot. It’s trading.

    For 3X ETF’s I like UPRO and SPXU. they track price in dollars perfectly. UVXY and VXX not so much. They track a math formula in percentage. How badly did they lag today? Not many talk about the SP500 funds. Worth looking at IMO for you ETF traders.

    Have a great day all.

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