Monday update

SHORT TERM: gap up opening rally, DOW +130

Overnight the Asian markets gained 1.6%. Europe opened higher, on Bremain optimism, and gained 3.3%. US index futures were much higher overnight, and the market gapped up to SPX 2092 at the open. The SPX had closed at 2071 on Friday. Around 10am the SPX hit 2101 and then began to pullback. The pullback continued throughout the day and the market closed at its low SPX 2083.

For the day the SPX/DOW gained 0.65%, and the NDX/NAZ gained 0.70%. Bonds lost 13 ticks, Crude rallied $1.25, Gold dropped $8, and the USD was lower. Medium term support remains at the 2070 and 2043 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: FED chair Yellen testifies before Congress on the economy, and FED governor Powell gives a speech at 2:30.

The market gapped up to start the week, hit SPX 2101, and then pulled back for the rest of the day. With the market opening at SPX 2092 it cleared resistance at 2086, suggesting the uptrend is resuming after last week’s large pullback. Thus far we can count three waves up from Thursday’s SPX 2050 low: 2080-2063-2101. Next resistance is at SPX 2121 and the 2131 pivot, with support at the 2070 and 2043 pivots. Short term momentum was quite overbought at today’s high and then backed off below neutral. Currencies and Bookies now suggest there will be no Brexit. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: neutral

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

About tony caldaro

Investor
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228 Responses to Monday update

  1. vivelaamo says:

    Another Brexit debate on tv. They’re all full of s**t!!

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  2. Jack Sparrow says:

    kvilia- my sympathies

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  3. captbara says:

    Today’s wave action can be another LD up.

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  4. Disaster, chaos. 10PM UK Time, Brexit poll results….2 more houre

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  5. trondack says:

    Did anyone see this: https://twitter.com/EconomicsOne/status/745280028766670849 According to John B Taylor, Yellen is running a lottery instead of the Fed.

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  6. Any major flaws with what the author is saying? from CNBC 2 hrs ago…. The next recession is already here—and there isn’t much the Fed can do……………http://www.cnbc.com/2016/06/21/the-next-recession-is-already-here-and-there-isnt-much-the-fed-can-do-commentary.html

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  7. bud67 says:

    ref OKE – one of my favorite investments since Feb 2016.
    No. Do not now own it, but sure is a pretty chart pattern,
    and amazing strength, since Feb…..

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  8. vivelaamo says:

    I see small caps leading the way down…

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  9. fionamargaret says:

    Oil band is 45-55…..though it finds it hard to go over 51ish..

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    • fionamargaret says:

      ERX is good for about 10 upside…..scalp it or buy & hold until you have some profits..

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      • fionamargaret says:

        …interesting snippet from a hedge fund manager…..he went short VRX and long Glencore (no idea the symbol)..he is still sticking to that…had it over the last year (WOW).
        Me, I think VRX is going to mid teens, and Glencore will do fine….if we cannot buy it here substitute with RIO (my idea), but probably the biggest bucks have been made??

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