SHORT TERM: red Monday follows blood moon, DOW -313
Overnight the Asian markets lost 1.1%. Europe opened lower and lost 2.5%. Early this morning FED governor Tarullo’s speech was released: http://www.federalreserve.gov/newsevents/speech/tarullo20150928a.htm. At 8:30 Personal income (+0.3% v +0.4%) / spending (+0.4% v +0.3%) was reported higher, and PCE prices were reported higher: +0.1% v +0.1%. The market gapped down at the open to SPX 1918. The market had closed at SPX 1931 on Friday. After the open the market continued lower until it hit SPX 1903 by 10:30. At 10am Pending home sales were reported lower: -1.4% v +0.5%. Then after a bounce to SPX 1911 by 11am, to market dropped to SPX 1880 just after 2pm. A bigger bounce followed to SPX 1891 just before 3pm, then the market hit a lower low at 1879 just past 3pm. Heading into the close the SPX bounced again to 1889, then dropped to 1882 to end the day.
For the day the SPX/DOW were -2.25%, and the NDX/NAZ were -2.95%. Bonds gained 19 ticks, Crude dropped $1.20, Gold dropped $14, and the USD was lower. Medium term support drops to the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: Case-Shiller at 9am, then Consumer confidence at 10am.
The market gapped down at the open, then exceeded last week’s SPX 1909 low in the first hour of trading. After that it headed lower, with several bounces along the way, to SPX 1879. Quite a drop for one day of trading. The impulse wave from SPX 2021 continues to unfold: 1953-1980-1909-1953-1879 (so far). The 5th wave down has thus far subdivided into three waves, expecting five: 1922-1935-1879. Short term momentum ended the day at extremely oversold, expecting a 4th wave bounce soon. Then the market should complete the 5th wave down, between the 1828 and 1869 pivots, to possibly end the downtrend and Primary IV. Defensive positions (hedging) remain favored, as they have been for many weeks. Short term support is at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market
lot of green on the screen for a bottom. Doesnt feel like a flush either. Doesnt look like a flush
Posted over the weekend I had a two year cycle low due yesterday on the Dow – 28th. These are +/- two days typically. Don’t know if it’ll work but interesting…
No way that was it for P4. Looking for a flash-flush to 1820ish to end P4
close enough for govt work – all my shorts are now closed. cheers
What you mean by govt work?
just a figure of speech fotis. it just means that while not exactly my original target/goal, things got close enough and i saw what i needed to see around the market to feel like taking off my shorts at that time. cheers
Ok thought was some kind of inside info you had there.Cheers mate and GL.
Really?? how’s this for a reverse man they got our number!!
man that 1867 is like a friggin magnet ………………here it comes ……………….but the VIX is doing nada ………………..hmmmmmm
it is indeed a magnet
Russell undercut, COMP undercut, Bio undercut, Financials Undercut ……………DOW and SP500 ……………..are the high betas leading or is the SP500 laggin????????
DOW and SP500 not yet
Major positive divergences on TNA on lower price. (higher rsi, higher low Stoch/Macd, etc). End of quarter flush and Oct is bear killer month. It’s always the best month for the Rut to bottom. That said, want to double your money? How about next APR TNA BULL CALL SPREAD (60/64) Buy the $60 Apr 2016 call and sell the $64 for $1.75. You think TNA won’t bounce over $64 between now and 7 months from now?
Easy money.
Been traveling a good bit and not an everyday reader. Any Newbie sightings?
interesting Carl Icahn video. sorry if it’s already been posted.
http://www.cnbc.com/2015/09/28/5-things-that-keep-carl-icahn-up-at-night.html