Tuesday update

SHORT TERM: market rallies to all-time high, DOW +113

Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.2%. US index futures were relatively flat overnight. The market opened 3 points above yesterday’s SPX 2265 close, bounced around a bit in the first half hour, then began to rally. By 3pm the SPX hit a new high at 2285, then closed at 2280.

For the day the SPX/DOW gained 0.60%, and the NDX/NAZ gained 0.80%. Bonds lost 17 ticks, Crude rose 30 cents, Gold slid $6, and the USD was higher. Medium term support rises back to the 2270 and 2212 pivots, with resistance at the 2286 and 2321 pivots. Tomorrow: FHFA housing index at 9am.

Interesting day. The market opened a bit higher, bounced around, and then rallied to new all-time highs. As noted in the weekend update we were not sure if the B wave part of the pullback/correction had ended. Today’s rally added a new twist to that uncertainty. At first glance the rally looks good with XLB, XLE, XLF all up over 1%, and market breadth at new highs. But the advance from SPX 2234 still looks choppy. Until the market clears SPX 2305 we maintain that a choppy B wave is still unfolding short term. Short term support is at the 2270 pivot and SPX 2254, with resistance at the 2286 and 2321 pivots. Short term momentum was extremely overbought at today’s high. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

About tony caldaro

Investor
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186 Responses to Tuesday update

  1. EL MATADOR says:

    LMAO…… more fake news (propaganda agenda)…mainstream media is promoting it like hawaiian punch……maybe tony PIII call is right considering this fake news going viral

    https://www.washingtonpost.com/news/speaking-of-science/wp/2017/01/26/the-doomsday-clock-just-moved-again-its-now-two-and-a-half-minutes-to-midnight/?utm_term=.5bb0e3d1926b

  2. scottycj1 says:

    For all the top pickers……here is someone who had a simple methodology and turned 10,000 into 2,000,000 in the 50’s . That would be close to 20 mil today and he did it in 18 months.
    Stocks (or Indexes) that hit new highs CONTINUE to hit new highs. All you need is a ruler and a pencil……..
    http://traderhq.com/trading-strategies/darvas-box-trading-strategy-explained/

    • EL MATADOR says:

      so how much does he have now?

    • aahmichael says:

      re: “Stocks (or Indexes) that hit new highs CONTINUE to hit new highs”

      umm…in today’s world, that would be called an “alternative fact.”
      For example:
      In March 2000 the indexes hit new highs and then declined 50% (the Nasdaq declined 78%)
      In October 2007 the indexes hit new highs and then declined 58%

      • scottycj1 says:

        As you’ve brilliantly pointed out….by definition there is always a high price….just like the one you called at 2194 that you said would never be crossed…..your short sale is well known here.

        • aahmichael says:

          Be my guest at copying and pasting any statement of mine where you claim I said 2194 would never be crossed. If you can’t do that, then you have once again exposed yourself as a complete fool. (For the record, getting short last August was my most profitable trade last year, as it was my most aggressive position of the entire year …double the size of any other position… and I made 120 handles per contract.)

    • Dex T says:

      Please keep in mind that those profits were only alleged. A criminal investigation was launched and much less was actually discovered in his accounts.

      Also as I recall it was never certain if he made his money from trading… or dancing and selling his books…

      https://en.wikipedia.org/wiki/Nicolas_Darvas

    • fotis2 says:

      Very good tx for sharing basic support and resistance following the market and letting it stop you out could work nicely on the short side too.

  3. micky says:

    This is the thing with 3rd waves, there are always another one to come..

  4. GDX gets above 23.55–positive sign.

  5. STEPHEN BARTLETT says:

    S&P heading to 2378 with minor pullbacks at 2311 and 2336. 2378 +\- 15 points will be a mid term top. Dollar yen looks like its forming a triangle on the 4 hour chart. Off the top abcxabcxabcde. Dollar will rally again once complete. In wave d at the moment. South African equity market had a nice move. More upside short term. Ftse commod names have another 3-5% upside and it could get spiky. They then correct 15-20%. That’s how I see things.

  6. phil1247 says:

    only 20% long now

    if aggressive extension fails at 2286 /esh7

    i am totally gone

  7. phil1247 says:

    took off more at 2298 SPX

  8. NEWBIE says:

    This will go down in history as the Trump blow off top.

  9. aahmichael says:

    For the first time since election night, I’m short SPX. 2298.

Comments are closed.