Thursday update

SHORT TERM: gap up opening again, DOW +134

Overnight the Asian markets gained 0.9%. Europe opened higher and gained 0.8%. US index futures were higher overnight as well. At 8:30 weekly Jobless claims were reported unchanged at 254K, and the PPI was reported higher: +0.4% v +0.5%. The market gapped up at the open to SPX 2166 and continued higher to 2169 just before 10am. The market had closed at SPX 2152 yesterday. After that the market pulled back to SPX 2159 by 1:30. Another rally attempt ended at SPX 2167 by 3:30 then the market dipped to close at 2164.

For the day the SPX/DOW gained 0.65%, and the NDX/NAZ gained 0.60%. Bonds lost 16 ticks, Crude rose 70 cents, Gold dropped $10, and the USD was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: the NY FED, Retail sales and the CPI all at 8:30, Industrial production at 9:15, then Business inventories and Consumer sentiment at 10am.

The market gapped up at the open again today, for the third time in five days. The DAX gained 1.4% today. After hitting a new high at SPX 2169, the market pulled back 10 points to 2159, then bounced into the close. We have had two pullbacks over the past two days: a 10 pointer today and a 10 pointer yesterday. Prior to that, there has not been a notable pullback since last Thursday’s 20 pointer: 2109-2089. Count remains the same as posted on the SPX hourly chart: i-ii, 1-2, 3 underway. Negative divergence yesterday and today accompanied those pullbacks. Short term support at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend


About tony caldaro

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