Wednesday update

SHORT TERM: slightly lower downtrend low then bounce, DOW -77

Overnight the Asian markets lost 1.5%. Europe opened lower and lost 1.2%. US index futures were lower overnight, and at 8:15 the ADP was reported lower: 147K v 154K. The market opened 5 points below yesterday’s SPX 2112 close, ticked down to 2106, then hit unchanged at 10am. After that the market started to head lower again. With only 5 point bounces along the way the SPX hit 2094 just after the FED released their statement at 2pm: http://www.federalreserve.gov/newsevents/press/monetary/20161102a.htm. Then the market started to rally. By 3:30 the SPX had hit 2105. But then pulled back into a SPX 2098 close.

For the day the SPX/DOW were -0.55%, and the NDX/NAZ were -0.85%. Bonds gained 9 ticks, Crude dropped $1.15, Gold rallied $9, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2116 and 2131 pivots. Tomorrow: weekly jobless claims at 8:30, then factory orders and ISM services at 10am.

The market opened lower today, bounced to unchanged, then hit SPX 2094 in afternoon trading. At that level short term momentum set up a positive divergence, and it represented a 50% retracement of the June-August uptrend. If that was the low for the downtrend, the first objective would be to get back to the 2116 pivot and then clear it. So far the market has only rallied from SPX 2094-2105. Short term support remains at the 2085 and 2070 pivots, with resistance at the 2116 and 2131 pivots. Short term momentum set up a positive divergence, while the daily RSI was extremely oversold. Best to your trading!

MEDIUM TERM: downtrend

LONG TERM: uptrend

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

About tony caldaro

Investor
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231 Responses to Wednesday update

  1. captbara says:

    Who else is reading about these very strange Podesta emails about “food”? Very disturbing, but not exactly surprising if you’re familiar with the elite’s obsession with occult practices.

  2. Dex T says:

    Election on Tuesday!

    Don’t forget to get out and vote… for TRUMP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  3. captbara says:

    Gunning for 200 DMA at 2082. Tomorrow?

  4. Ajay Singhi says:

    SPX sell call at 2142 and 2155 has hit all targets. Buy initiated today at 2187, tgt 2209.

    Buy without fear !!

  5. johnnymagicmoney says:

    best case scenario for you liberal loving folks is your girl becomes president for like a month or two then she gets impeached. So if that’s what you are shooting for then hats off to you but either way she goes down. As a Republican I might take more joy in watching her burn in office like a witch (which makes sense cause she is a witch). No one is more deserving of jail than her.

  6. vivelaamo says:

    Very big bounce tomorrow regardless of NFP numbers. You can call it the catalyst if you must.

    • Page says:

      vive: I strongly agree.

    • pooch77 says:

      Cant believe we get a big bounce and holding long into Monday,if we gap up it should sell off by end of day

      • kvilia says:

        Pooch,

        2061 is 61% retracement from July – 2193 top. I am watching this number, hope we can get some bounce here. And we should into election. I think its downhill from there no matter who wins. Will be looking to get some shorts on this bounce. Meanwhile I am closing my short R2K position today.

      • vivelaamo says:

        Can’t believe? If we don’t bounce tomorrow I’ll be very surprised.

        • pooch77 says:

          Normally markets rally into election.I believe this only 3rd or 4th time in 85 years it has been going down into election.With a 75% certainity of Dec rate rise i just dont think jobs will move the market much.

        • pooch77 says:

          Normally markets rally into election.I believe this only 3rd or 4th time in 85 years it has been going down into election.With a 75% certainity of Dec rate rise i just dont think jobs will move the market much.

  7. mcgcapital says:

    Just closed out my shorts from 7000 and 7100 on the FTSE. Price is still extremely weak but we’re oversold. With NFP tomorrow that may be a catalyst for a short relief rally. Longer term, I think we rally on Clinton and fall on Trump. I had thought we’d see a decent uptrend towards 2200 if Clinton won but I’m doubting that a bit now until we see how price action is post election.

  8. pooch77 says:

    VIX up another 10% today

  9. kvilia says:

    Fiona, your SPX number cant be right. 2092-50% retrace, 2069-61% – last long stand from July lows. Then daily long is broken, so 2069 is the last chance to hold the long term uptrend.

    • fionamargaret says:

      The numbers show 2043…but I shall check in detail tonight…remember the numbers change seldom, but they just changed yesterday, so I don’t pay much heed for a few days..

  10. captbara says:

    Not sure if the intraday NYMO is updating correctly but still shy of getting under the BB.

  11. phil1247 says:

    sold GLD

    out of all gold now

    will stay out till nov low unless i see great strength

Comments are closed.