Monday update

SHORT TERM: slightly higher open then record close, DOW +26

Overnight the Asian markets gained 0.3%. Europe opened higher but ended mixed. US index futures were flat to higher overnight, and the market opened two points above Friday’s SPX 2477 close. Right after the open the market drifted down to SPX 2476 by 10:30, then began to inch its way higher again. In the last hour of trading the SPX hit 2481 and closed there.

For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.55%. Bonds gained 3 ticks, Crude slipped 30 cents, Gold dipped $1, and the USD was lower. Medium term support rises to the 2479 and 2456 pivots, with resistance at the 2525 pivot. Tomorrow: nothing on the economic agenda.

The market started the week slightly higher today, then basically went into drift mode for the rest of the day until the close. For the past 14 consecutive trading days the market has remained in a very narrow 1% range: 2460-2484. Market is trading like it did before index futures were introduced in the 1980’s. This is clearly illustrated by the recent lowest VIX level since its original inception in 1986. The two previous all-time lows, original formula: 1995 and 2005, and new methodology: 1993 and 2006. Bull market tops have occurred, at the earliest, one year later. Short term count remains unchanged: 2432-2413-2484—, with a possible 4th wave triangle: 2460-2480-2465-2481—. Short term support rises to the 2479 and 2456 pivots, with resistance at 2525 pivot. Short term momentum ended the day slightly overbought. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend


About tony caldaro

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135 Responses to Monday update

  1. JK1987 says:

    vipulm, guess what. I can’t help but have to say – you smell as a bear from miles away. you actually don’t have do all these contrarians.

    • JK1987 says:

      meaning be yourself is the best, and most comfortable. cheers!

    • vipulm555 says:

      When SPX reaches 2500 let me know , who is bear

      • JK1987 says:

        spx 2500 and above, not a matter to me.
        2500, 2550, 2600, 2650, 2700…3000… then what? it has to come down eventually. not a matter.
        I am trying to help you to sleep better in the night if without all the faking and worries.
        genuineness, be yourself is the best.

  2. uas2014 says:

    Trump warns North Korea threats will be met with fire and fury

  3. johnnymagicmoney says:

    Fire & Fury

    The Ode to Korea begins
    And you know in the end who will win
    It wont be the bulls
    Cause their tummies are full
    For greed is one mighty big sin

    So if conditioned to buy
    I dare you to try
    To short volatility now
    Cause fury will come
    And fire to some
    Koreans in the north will soon cry

  4. vipulm555 says:

    2467, buying opportunity for 2500

    • vivelaamo says:

      Agree. If we get some decent moves on the downside I may have to come out of retirement to go long. Can’t say no to free money.

      I hope all those getting excited and shorting remember the god knows how many times this has happened over the years and don’t get greedy. Take your profits guys.

      Dow is down 0.1 as I speak and there is talk on this blog like there is going to be a big market crash. Tells you all you need to know.

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