Wednesday update

SHORT TERM: consolidation over, DOW +36

Overnight the Asian markets gained 0.4%. Europe opened higher and gained 1.1%. US index futures were higher overnight, and the market opened at SPX 2170 a new high. The SPX had closed at 2164 yesterday. In the opening minutes the market pulled back to SPX 2165, then turned higher again. At 11:30 the SPX hit 2176. Then it went into a four point trading range for the rest of the day and closed at 2173.

For the day the SPX/DOW gained 0.30%, and the NDX/NAZ gained 1.10%. Bonds lost 9 ticks, Crude rose 10 cents, Gold dropped $18, and the USD was flat. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: the ECB concludes its meeting, weekly Jobless claims and the Philly FED at 8:30, FHFA housing prices at 9am, then Existing home sales and Leading indicators at 10am.

The market started the day one point above the all time high of SPX 2169, dipped a few points, then rallied right into the 2177 pivot. After the open we updated the hourly chart to display, as noted yesterday, Minor waves 3 and 4 had completed at SPX 2169 and 2156 respectively. Minor wave 5 of Int. three should now be underway. Our minimum target of the 2177 pivot for Int. three has already been reached. Our preferred target is the 2212 pivot. When Int. three concludes, an Int. four pullback should be similar to the Int. two pullback of 35 points. After that, Int. five should push the SPX to the 2250+ area before this uptrend ends. Short term support is at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum is overbought. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend


About tony caldaro

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