Wednesday update

SHORT TERM: flat opening then lower, DOW -45

So far this week the Asian markets gained 1.2%, and the European markets have gained 0.6%. The SPX started the week at 2840, then rallied to 2863 by Tuesday. Just 10-points shy of an all-time high it started to pullback.

The Monday rally took the SPX over 2848, quantifying an impulse wave from SPX 2692: 2743-2699-2848-2796-2863. This is the first internal impulse wave we have seen since the early-April low. It suggests the activity prior to the late-June SPX 2692 low was indeed a leading diagonal Minor wave 1 followed by a Minor wave 2. Minor 3 is now underway.

As noted earlier the rally from SPX 2692 displays 5 waves up, suggesting there could be a significant pullback at any time. Previous significant pullbacks, during this uptrend, have been between 65 and 122 points. Also of note, during the entire SPX 2796 advance to 2863, the largest pullback has only been 7-points. Anything more than that could suggest a significant pullback has just started. Today the market pushed the current pullback to 10 points early, before rebounding the rest of the day. On the SPX hourly/daily charts we have negative divergences at Tuesday’s SPX 2863 high. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend


About tony caldaro

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331 Responses to Wednesday update

  1. fionamargaret says:
    Thanks Tom McClellan

    Thanks and love to Tony…..and everyone xx


  2. torehund says:

    Just had to post this philosophical masterpiece. Listen a bit of a time and digest it. There is a reason philosophy is of higher order than the rest of the academic disciplines. Understanding philosophy is a necessity when approaching economics, as much as long range counts dictates in EW- theory. Merely looking at one country in isolation is what most economist will grasp. Philosopical economics is looking at the entire world simultaneously. Well we are currently in a nationalistic myopic oriented phase of world history which will make matters worse for a while. A wobbly phase.


  3. torehund says:

    Inadvertent circulus viciosus: Trump increasing toll on countries that dive into hyperinflation will not benfit from their lower currency advantage that could have reversed the misery. So the currency discrepancy just widens. This will happen until the Turkish society collapses and there will be no industry left. And every time Trump rises import tax money will run into the Gov pocket until the providers succumbs. Alongside a hysterically rising Usd, Dont think Its what he intended🤔


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