Tuesday update

SHORT TERM: flat opening then rally, DOW +24

Overnight the Asian markets lost 0.2%. Europe opened lower but gained 0.3%. US index futures were higher overnight. At 8:30 Q3 GDP was reported higher: 3.2% v 2.9%, and at 9am Case-Shiller was reported unchanged at 5.1%. The market opened 1 point below yesterday’s SPX 2202 close, bounced to 2204, then dipped to 2198 all in the first few minutes of trading. Then the market started to rally. At 10am consumer confidence was reported higher: 107.1 v 98.6. The rally continued until 2:30 when the SPX hit 2210. Then a pullback into the close ended the day at SPX 2205.

For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.25%. Bonds gained 3 ticks, Crude dropped $1.85, Gold slid $5, and the USD was lower. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2270 pivots. Tomorrow: the ADP at 8:15, personal income/spending and the PCE at 8:30, the Chicago PMI at 9:45, pending home sale at 10am, then the FED’s beige book at 2pm.

The market opened flat today, pulled back to SPX 2198, then moved higher for the rest of the day. The pullback, thus far, is only 15 points from the uptrend high at SPX 2213. If the market rallies to new highs the pullback will have been just another small retracement, in a series of small retracements, since this uptrend began. Thus far, as you have probably observed, this uptrend has been quite resilient. Short term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2270 pivots. Short term momentum rebounded to around neutral after getting oversold. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

About tony caldaro

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91 Responses to Tuesday update

  1. Jack Sparrow says:

    time to short oil around 52 (with a tight stop) and then go long after few dollars drop for a move upto 70


  2. Bud Fox says:

    RE GLD…Gold. Looking like a good buy right here, in GLD…that’s my view.


  3. gary61b says:

    ES looks to be forming a ED with a,b,c,d on my tick chart and one more push up to 2016 level would finish the look…. below 2199 and the deal is off.


  4. captbara says:

    Every index is doing something very different than one another. Very weird to see


    • johnnymagicmoney says:

      the sector rotation has been death for managed money. Trends don’t last long and they are violent and quick. Underneath the bleed up there has been constant damage and constant euphoria. Don’t know why people think this is a great sign.


  5. H D says:

    10 handle hit from the early morn high, opposite of yesterday. Heard a stat, Dec. has never been down 3 years in a row, ever. Down last 2 years. Ho ho ho


  6. vivelaamo says:

    Russel should hit the 18 day ema today or tomorrow. Time to start loading the Xmas longs.


  7. Personal income and outlays over last 2 months says it all. A huge gain of 1 percent in both spending and income over last 2 months. In fact the spending component has not yet exceeded the income growth. that tells you the consumer is not yet getting back to the old days of over spending.

    I believe that will happen but not before a wave 4 correction. Wave 5 will be something to behold. It should be one for the record books. getting ahead of myself so for now lets see if we stall early next year and fall some 20 percent in 2017.


  8. learnedmylesson25 says:

    Looking at the Nasdaq…there are a lot of open gaps from July waiting at the bus stop to be picked up.Wonder if a few of them will be attended to on this -div.Lots of RSI problems developing from hourly to monthly.I know…could mean nothung,but going by the Brexit rally…could easily see 5000 or lower before the next upleg.Later.


  9. kingfrogcash says:

    Doug Kass suggesting an afternoon sell off on November high gainers to re-balance. I’ve heard of this at Qtr end, but not individual months.


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