Thursday update

SHORT TERM: lower open then pullback, DOW -78

Overnight the Asian markets gained 0.3%. Europe opened higher and gained 0.1%. US index futures were lower overnight. At 8:30 weekly Jobless claims were reported lower: 253K v 254K, and the Philly FED was reported lower: -2.9 v 4.7. At 9am the FHFA was reported higher: +0.2% v +0.2%. The market opened one point below yesterday’s SPX 2173 close, pushed up to 2175, and then started to pullback. At 10am Existing home sales were reported higher: 5.57M v 5.53M, and Leading indicators were higher: 0.3% v -0.2%. The pullback continued until just past 3pm when the SPX hit 2160. After that a bounce into the close ended the day at SPX 2165.

For the day the SPX/DOW lost 0.40%, and the NDX/NAZ lost 0.25%. Bonds gained 10 ticks, Crude dropped $1.20, Gold rallied $19, and the USD  was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Nothing on the economic agenda tomorrow.

The market opened slightly lower today, then bounced to within one point of the high. It then started a steady retreat as the market pulled back, with only 4 point bounces along the way, to SPX 2160. This is the largest pullback since the 35 point Int. wave ii. Suggesting Int. wave iv is probably underway, as noted on the hourly chart. Int. ii set up a positive divergence at its low, possibly Int. iv will do the same. Short term support is at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum declined to quite oversold before bouncing late. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend



About tony caldaro

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