Tuesday update

SHORT TERM: lower open on pullback Tuesday, DOW -59

Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.7%. US index futures were lower yesterday, and overnight, and at 8:30 the NY FED was reported lower: 6.5 v 9.0. The market opened 7 points below Friday’s SPX 2275 close, ticked down to 2265 by 10am, then tried to rally. After hitting SPX 2272 by 10:30 the market went into a 4 point trading range, and hit 2272 again by 1:30. After that it headed even lower. Around 3pm the SPX hit 2263, then bounced to close at 2268.

For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.45%. Bonds gained 16 ticks, Crude added 15 cents, Gold rallied $17, and the USD was lower. Medium term support drops again to the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Tomorrow: the CPI at 8:30, industrial production (est. 0.7%) at 9:15, the NAHB at 10am, the FED’s beige book at 2pm, then a speech from FED chair Yellen at 3pm. Full day!

The market opened lower to start the holiday shortened options expiration week. After hitting SPX 2265, it bounced to 2272, then hit 2263 just before a 2269 close. Last week’s entire trading range, SPX 2254-2279, which occurred within 24 hours, has already been retraced 61.8% at today’s low. Market movement continues to look like choppy corrective activity. Short term support drops back to SPX 2254 and SPX 2245, with resistance at the 2270 and 2286 pivots. Short term momentum ended the day with a slight positive divergence. Trade what’s in front of you!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

About tony caldaro

Investor
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74 Responses to Tuesday update

  1. cj32 says:

    Cr. CBZ

    Like

  2. learnedmylesson25 says:

    Yellen put a hit out on gold (as usual).Speech just given.DXY up hat it lost yesterday.Dollar never stays under the 50d too long does it?

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  3. captbara says:

    Switch back to long DXJ & USDJPY from long SPX. Abe time again

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  4. phil1247 says:

    gold

    1185 must support or its over

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  5. Since Friday’s close, VIX has gone up 11%, while UVXY has actually gone DOWN by 3%. How is that even possible? UVXY “should” be up by 22%, but even though it never achieves 2:1, it should still be at least up 10%. What gives, ProShares?!?

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  6. phil1247 says:

    gold

    took small profits at 1212 /gc

    if 1208 fails
    support drops to 1199

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  7. i think if we don’t get thru resistance soon, people are going to head for the exits soon and not wait for the inauguration.

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  8. vivelaamo says:

    I think we will get a 5% drop in US indices and I also thank that would be very healthy/bullish for the market and a great opportunity to buy.

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  9. mcgcapital says:

    Just feels like rotation at the moment, when one thing goes up something else goes down. Can’t understand why anyone would be a buyer here without a pullback first given we’re clearly defining some resistance levels and there are signs of deterioration

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  10. Jack Sparrow says:

    what if we already hit the high for next 2/3 years a couple of weeks ago…remember its not easy to call the top otherwise everyone would be doing it…top normally sneaks in when no one expects it…i havent seen anyone call the high of few days back as a top…we can count 5 overlapping waves from 1800 in SP

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