Tuesday update

SHORT TERM: gap up and go Tuesday, DOW +193

Overnight the Asian markets gained 0.4%. Europe opened higher and gained 1.6%. US index futures were higher overnight, and at 9am Case-Shiller was reported higher: +5.5% v +5.5%. The market gapped up at the open to SPX 2070 and continued to rally. The SPX had closed at 2057 yesterday. At 10am Consumer confidence was reported higher: 96.5 v 90.4. The rally continued until 10:30 when the SPX hit 2077. Then after a pullback to SPX 2072 by noon, the market moved even higher. Just past 3pm the SPX hit 2082, then pulled back to close at 2078.

For the day the SPX/DOW gained 1.10%, and the NDX/NAZ gained 1.40%. Bonds dropped 21 ticks, Crude added 70 cents, Gold slipped $1, and the USD was higher. Medium term support rises to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: Pending home sales at 10am.

The market gapped up at the open to a new rally high, then after a small pullback moved above the mid-December SPX 2077 high. Holding above the SPX 2042 support level yesterday and clearing the 2070 pivot range today, are both positives for this potential uptrend. The next objective, of course, would be to clear the 2085 pivot range (2092). Short term support is now at the 2070 pivot and SPX 2042, with resistance at the 2085 pivot and SPX 2104. Short term momentum rose from yesterday’s oversold condition to quite overbought today. Best to your holiday week trading!

MEDIUM TERM: positive response to inflection point

LONG TERM: bull market

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

About tony caldaro

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132 Responses to Tuesday update

  1. lunker1 says:

    gto spy losing R1 bad? back to wpp?


  2. Gary Lewis says:

    I marvel at everyone trying to pick a bottom in oil. I used to be a professional commodity trader for a bank in the late 90s. The one thing that I learned very quickly is that commodity trends run for much longer than anyone can imagine. Never trade against the trend. That being said, good luck to you all.


  3. blackjak100 says:

    Did the $SPX just kiss its 200dma?


  4. simpleiam says:

    Why stop there, Dex? I’ve seen WTI at $10, so why $22? Wascally Wabbit with $26?

    FACT: Nobody knows how low it will go. It’s the most volatile of all the commodities traded.

    Even scarier, I met a guy who bought XOM at $1 per share! Co. savings plan, he showed me the statement. Too bad he didn’t sell over a year ago!


    • rabbittrader1 says:

      Rabbit says $26 but then final drop to $22 . Gold usually tracks oil. Looks like “abandoned Baby” formation on the close of today . Not a good sign IMVHO.Anyway Happy New Year to All, (More money can be made FASTER on the short sude of gold, crude oil and the SPX than on the Long side,


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