Friday update

SHORT TERM: US strikes Syrian airbase, DOW -7

Overnight the Asian markets lost 0.1%. Europe opened lower but gained 0.3%. US index futures plunged after reports of a US air attack on a Syrian airbase. Heading into the open, however, they had recovered. At 8:30 monthly payrolls were reported lower: 98K v 235K, and unemployment was reported lower: 4.5% v 4.7%. The market opened 1 point below yesterday’s SPX 2357 close, bounced to 2361, then hit 2351 by 10am. At 10am wholesale inventories were reported higher: 0.4% v -0.2%. The market then started to work its way higher. For the third day in a row the market rallied until about 1:30, this time hitting SPX 2364, and then started to back off. At 3pm consumer credit was reported higher: $15.2B v $8.8B. The market then closed at SPX 2356.

For the day the SPX/DOW lost 0.05%, and the NDX/NAZ lost 0.05%. Bonds dropped 13 ticks, Crude rose 55 cents, Gold added $3, and the USD was higher. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Today the WLEI was reported lower: 57.5% v 57.8%, and the Q1 GDP estimate was reported lower as well: 0.6% v 0.9%.

Despite an overnight drop to the SPX 2340 cash equivalent in the futures market, the cash market only printed a low of 2351 today. Nevertheless, the short term market activity continues to act quite choppy. Which continues to support a potential ongoing correction. More on this in the weekend update. Best to your weekend!

MEDIUM TERM: uptrend under pressure

LONG TERM: uptrend

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

About tony caldaro

Investor
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14 Responses to Friday update

  1. torehund says:

    Just took a renewed look at the Rut daily chart, and I just have a distinct feel that the histogram will feed us positive bars. And since the macd lines are favorably placed I would think we may face some upside pretty soon. Thats my 5 cents for the weekend.

  2. http://www.zerohedge.com/news/2017-04-07/boring-equity-action-masks-devastating-eurodollar-unwinds-after-dudley-speech
    I see what happened yesterday.Dudley do Wrong opened up his lying Fed mouth to influence the dollar.Well played crook.

  3. micky says:

    Apple LT, my tool has 2nd resistance just over 150 atm, the longer it takes the higher the target .

  4. With GDP being revised downward for Q4 2016 and Q1 2017 I have doubts the Fed will carry through on all the rate increases and bond liquidation it has planned upon .

  5. opader says:

    https://pbs.twimg.com/media/C82W60QUQAA3nD3.jpg:large

    Breadth was lousy for both NYSE and NASDAQ today, SGS ticked lower and DJT under-performed. More selling is highly likely coming next week.

  6. 123 abc says:

    Thank you Tony et al, a good weekend to everyone.


  7. phil1247 says:

    SPX close 2355.54

    a superb effort …. Thailand Hawaii….

    but in a photo finish
    i won by a nose

  8. llerias7 says:

    So probably we are in minor 4…that would make more sense to me (higher degree waves). As I suspect days ago we should have minute waves instead of “micros”…besides would be odd to have “micro-waves” extended for several days in a row. I hope you do not mind about my remark. Have a nice weekend, Tony.

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