Wednesday update

SHORT TERM: volatile FOMC day, DOW +198

Overnight the Asian markets lost 0.3%. Europe opened higher and gained 1.2%. US index futures were higher overnight, and the market opened four points above yesterday’s SPX 2066 close. In the opening minutes the SPX dipped to 2067 then rallied to a new uptrend high at 2082 just past noon. After that the market dipped to SPX 2078 by 12:30 then drifted to an even higher high at 2085 just before the FOMC statement: http://www.federalreserve.gov/newsevents/press/monetary/20151028a.htm. After the statement was released the market immediately sold of to SPX 2063 within 15 minutes. After that pullback the market rallied to SPX 2090 where it closed.

For the day the SPX/DOW were +1.15%, and the NDX/NAZ were +1.10%. Bonds lost 23 ticks, Crude rallied $2.75, Gold dropped $9, and the USD rallied. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Q3 GDP (est. +2.3%) and weekly Jobless claims at 8:30, then Pending home sales at 10am.

The market opened higher today, dipped, and then rallied to a new uptrend high right at the 2085 pivot. After the FOMC statement the market dropped to SPX 2063, and then rallied to a higher high into the close. At SPX 2085 the market had done the minimum required for Int. iii (a higher high), and five Minor waves. However, the market shrugged off the pullback and rallied to new highs into the close: Minor 5 is subdividing. Short term support rises to the 2085 and 2070 pivots, with resistance at SPX 2100 and the 2131 pivot. Short term momentum was quite overbought early, declined, then ended with a potential negative divergence. Best to your GDP trading!

MEDIUM TERM: uptrend

LONG TERM: bull market

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

About tony caldaro

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142 Responses to Wednesday update

  1. Dex T says:

    Oh dear. Not a happy ending but it was only a matter of time . Cryan (Cryin?) is an apt name for the CEO!

    Deutsche Bank cutting 15,000 jobs as new CEO sets out strategy plan

    “Deutsche Bank is slashing 15,000 jobs and shedding assets in which some 20,000 staff are employed, as new Chief Executive John Cryan starts to implement a deep overhaul aiming to improve returns at Germany’s biggest bank.

    Cryan said the bank will sacrifice its 2015 and 2016 dividends as it seeks to bolster its finances and retain money to pay for sins of the past. “I do not think that 2016 and 2017 will be strong years,” he told reporters on Thursday. ”

    The lender is to axe 9,000 full-time jobs and 6,000 external contractor positions. Three quarters of the other 20,000 jobs to go are at retail unit Postbank, which Deutsche Bank is spinning off.

    http://finance.yahoo.com/news/deutsche-bank-q3-trading-gains-082342510.html

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