Wednesday update

SHORT TERM: gap up opening then choppy day, DOW +36

Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and the market gapped up to SPX 1987 at the open. The market had closed at SPX 1979 yesterday. As the market moved higher, at 10am Wholesale inventories were reported higher: +0.3% v -0.1%. By 10:30 the market had reached SPX 1992, and then started to pullback. At 11am the SPX hit 1980, rallied to 1993 by noon, pulled back 1984 just past 3pm, the rose to end the day at 1989.

For the day the SPX/DOW gained 0.35%, and the NDX/NAZ gained 0.60%. Bonds lost 13 ticks, Crude rallied $1.75, Gold dropped $9, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2043 pivots. Tomorrow: the ECB meets, weekly Jobless claims at 8:30, and the Budget deficit at 2pm.

The market gapped up at the open, to break the gap down opening streak, and probably avoided another selloff. The SPX spent the entire day within yesterday’s 1977-1994 range (1980-1993). An indecision day ahead of the ECB tomorrow. Not much to report on the short term action, except that it looks quite corrective since the SPX 2009 high. Short term support remains at the 1973 and 1956 pivots, with resistance at SPX 2009 and the 2019 pivot. Short term momentum ended the day around neutral. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: bear market



About tony caldaro

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277 Responses to Wednesday update

  1. johnnymagicmoney says:

    market has turned into a joke plain and simple

  2. captbara says:

    Toast is coming. I am getting my ham and dijon ready.

    • mjtplayer says:

      High to low:

      50% retrace = SPX 1,989
      .618 retrace = 1,994

      We just tagged 1,989

    • rabbittrader1 says:

      Maybe minor wave 4 (in gold) is not a FLAT, therefore we may have topped at 1274 and change. Also PPT is goosing SPX so gold may call it quits in here and drop to 1242 or less before reversing. Rabbit don;t think we’re in Kansas anymore TOTO ! Rabbit

  3. TMF says:

    5 waves off the bottom today looking likely if we close green….bears are loosing their grip

    • TMF says:

      5 waves off the bottom, bottom in….next pullback will be last chance to ride wave 5 up to 2090, that will be wave 1 of P5, wave 2 of P5 will build a handle, wave 3 of P5 goes to new all time highs. Target 2400 SPX.

      • elcidul says:

        Are you sure? Did you take a look at the DAX today or the NDX? Can you make some count on german DAX or NDX100 as for the sp500 you just made? Nope, but I challenge you to do so! 🙂 And that 5 wave from last 2-3hours could be 3 wave or a 3-3-5 or a 5-3-5 correction (ii) up on sp500! Ww shall see tomorrow but i think it is bulls who should be carefull now… 😉

  4. TMF says:

    BOOYA ! wave 4 in, new highs coming….

  5. captbara says:

    Bears last stand! Short with all your might!!

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