Friday update

SHORT TERM: pullback ends choppy week, DOW -131

Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.3%. US index futures were lower overnight, and the market opened 5 points below yesterday’s SPX 2177 close. The market continued to decline throughout the day, with only 3 point bounces, until it hit SPX 2164 at 2pm. Then after a bounce to SPX 2171 by 3:30 the market pulled back again to end the week at 2165.

For the day the SPX/DOW lost 0.65%, and the NDX/NAZ lost 0.65%. Bonds gained 4 ticks, Crude dropped $1.60, Gold added $1, and the USD was higher. Medium term support drops to the 2131 and 2116 pivots, with resistance at the 2177 and 2212 pivots.

After yesterday’s gap up rally indicators left a short term negative divergence at the close. The market opened 5 points below yesterday’s close, declined to SPX 2164, hit short term oversold, and then bounced around into the close. Looks like a fairly normal pullback after a 40 point rally. Complete review, long, medium and short term in the weekend update. Best to your weekend!

MEDIUM TERM: uptrend probably underway

LONG TERM: uptrend


About tony caldaro

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25 Responses to Friday update

  1. Page says:

    Thanks Tony. Have nice weekend.

    Rally continues next week starting Tuesday.

  2. mjtplayer says:

    Thanks Tony!

    Today’s action took back yesterday’s gains, Monday & Tuesday were flat, so all of this weeks’ gains were from the post-Fed bounce. Or should I say, all of this weeks gains were from 2pm – 4pm on Wed.

    Oil failed and gold has been disappointing on this Fed bounce. 1 week left in Sept and end off quarter, should be biased higher after the Fed, we’ll see, the debate Monday night may or may not throw a wrench into things.

  3. 123 abc says:

    Thank you Tony et al for a week of great OEW daily updates; certainly been an indecisive market and hopefully a direction is now emerging.

  4. pooch77 says:

    2200 nexr

  5. rd3777 says:

    Thanks Tony. The market will either blast up or continue down next week. But today looked like a classic failure in a lot of stocks. Crude failed and also the JPN225. The Z pattern looks complete and if so the largest decline since the 2011 X wave is on tap and maybe larger as a super cycle A wave down might take place. The Brexit QE bounce is 62 days today and that is about right. We shall see if the triple zig zag supercycle Fed QE bubble has indeed ended.

  6. John Corry says:


  7. kvilia says:

    Thank you, Tony. Have a good weekend.

  8. Thanks Tony. At the moment the market seems to be working within the Fibs established by recent extremes. 78.6% is 2178 while 61.8% is 2165. Pretty close and as fate would have it both are close to significant levels. I would not be surprised to see a bit more downside as the market has only given back 40% of the rise from 2140 to 2180. It could easily follow another probe around 2177.

  9. fotis2 says:

    Great stuff Tony thanks and have a great one.

Comments are closed.