Monday update

SHORT TERM: gap up opening, DOW +143

Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.8%. US index futures were higher overnight. The market gapped up at the open to SPX 2323, and continued to rise. The SPX had closed at 2316 on Friday. With 2-point pullbacks along the way the market rose to SPX 2332 by 1:30. Then a pullback into the close ended the day at SPX 2328.

For the day the SPX/DOW gained 0.60%, and the NDX/NAZ gained 0.55%. Bonds lost 6 ticks, Crude dropped 95 cents, Gold slid $8, and the USD was higher. Medium term support rises to the 2321 and 2286 pivots, with resistance at the 2336 and 2385 pivots. Tomorrow: the PPI at 8:30, then FED chair Yellen’s congressional economic testimony at 10am.

The market gapped up at the open today, jumping over the OEW 2321 pivot. It then cleared that pivot and rallied to within 4 points of the 2336 pivot. Considering Monday’s have been generally down days for the past five weeks, rallying right up to the 2336 pivot was an impressive beginning to the week. This rally, from Wednesday’s SPX 2285 low, looks quite impulsive. Should the market clear the 2336 this week, then the next pivot is not until 2385. Short term support is now at the 2321 and 2286 pivots, with resistance at the 2336 and 2385 pivots. Short term momentum remained quite overbought all day, and ended overbought. Best to your trading!

UNU SWARM: tomorrow Tuesday at 5PM eastern, please be prompt. For those interested in joining, that did not participate last week, please follow the instructions posted in this link: thank you!

MEDIUM TERM: uptrend

LONG TERM: uptrend


About tony caldaro

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93 Responses to Monday update

  1. kingfrogcash says:

    zerohedge ‏@zerohedge 2m2 minutes ago

    Lockhart does not see compelling reasons for a March hike


  2. 123 abc says:

    All aboard the Primary-iii express; ‘pivotal’ moment in OEW…


  3. vivelaamo says:

    I feel like days like this have repeated over and over again for years. Keep shorting the top boys.


  4. micky says:

    what a joy these 3rd waves are… and the indicator guys try and short them all the time.


  5. interesting juncture, a lot of people looking for 2336 area to short, which means a lot of juice to squeeze higher if it want to. at least we will all know its for real.


  6. I think today’s low was nano 4 of micro 3, now in nano 5 to 2,336…2,347 maybe…


  7. johnnymagicmoney says:

    Holy negative divergence batman……………………and right at the hugely important 2336

    hmmmm me think we are close…………….I think we needed that one last incremental high. Im sorry but Goldman Sachs will never ever ever be a company that produces a consistent stream of revenue and they are not a bank so I don’t care how much rates go up it doesn’t help them as much as BAC or JPM. To push that stock up post election almost 50% in that short time frame is a bubble. And their are a bunch of them………………not small companies but big companies. Lots of companies reporting crappy earnings and lowered outlooks and they are at new highs. Im not saying we wont be higher six months out. I am just saying the pricing here is stupid


  8. blackjak100 says:

    New ATH with NYAD negative so far….still 2.5 hrs to go.


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