Wednesday update

SHORT TERM: gap up opening then new ATHs, DOW +56

Overnight the Asian markets lost 0.4%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and at 8:30 durable goods orders were reported higher. The market gapped up at the open to SPX 2506, hit 2508 in the opening minutes, then started to pullback. The SPX had closed at 2497 yesterday. At 10am pending home sales were reported lower. At 11am the SPX had closed the gap and hit 2496. And then started to rally. The rally continued into the afternoon as the SPX hit 2512, a new high. Then the market pulled back to close at SPX 2507.

For the day the SPX/DOW gained 0.30%, and the NDX/NAZ gained 1.05%. Bonds lost 17 ticks, Crude rose 20 cents, Gold dropped $12, and the USD was higher. Medium term support remains at the 2479 and 2456 pivots, with resistance at the 2525 pivot. T0morrow: Q2 GDP (est. +3.2%), and weekly jobless claims.

The market gapped up at the open today for the first time in over two weeks. The last gap up opening eventually led to new highs at SPX 2509. This gap up opening made new highs the same day at SPX 2512. With today’s activity we can now count three nearly completed waves up from the Micro 2 SPX 2417 low: 2455-2428-2512. Refer to yesterday’s update for the subdivisions of wave 3. When this rally does conclude we would look for about another 20 point pullback for wave 4, then a rally to the 2525 pivot range for wave 5. Short term support is at the 2479 and 2456 pivots, with resistance at the 2525 pivot. Short term momentum ended just below overbought. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend


About tony caldaro

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164 Responses to Wednesday update

  1. well, short term count from 2488 little tricky
    2488-2508 20 points
    2508-2495 13 points
    2495-2512 17 points
    2512-2503 9 points
    2503-2519 since wave 3 cant be the shortest?

    or are we still working on 3 with 4 and 5 to come


  2. vivelaamo says:

    Who the hell is buying at highs with this in the background?

    The ‘boyz’ must know it’s all talk right and nothing will come of it?


  3. NEWBIE says:

    Nasdaq leading this bloated market down


  4. CL oil is down 1.5% on global news that should be generally constructive……….meaning we don’t what’s weighing upon on oil prices. While Turkey moves to disrupt Kurdish exports, Ghana doubles energy revenue while Chinese inventories drop. Something is missing,


  5. scottycj1 says:

    MJT Player
    I beg to differ…..many of the ladies think I’m an Icon…..cause I’m so suave and deboner


  6. fionamargaret says:

    Looking at gold on my pattern, it is basically do or die time, so check your charts…
    I bought UGLD, NUGT, JNUG…..and VXX might go lower, but I bought today as 41 was a buy price (38 optimum, but I don’t think we go that low)


  7. learnedmylesson25 says:
    This nailed me for a day last year…I said they wouldn’t get me in 2017–and they haven’t,but only because I sold when GDX dropped below its 10 and 20d a week and a half ago.I forgot about China not being open,but as the charts in the article show,it IS important.Gold sells off,and this year,it looks like it started early.This would coincide with the selloff wrapping up in the Oct 1st time frame that I posted a while back.Goldfingers crossed.


    • learnedmylesson25 says:

      China reopens Oct 9th.Possibly,if they front ran the selling,they front run the buying?(Maybe Oct 1 to Oct 5th area?)


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