Wednesday update

SHORT TERM: gap up opening as rally continues, DOW +241

The first three days of the week display Asian markets up 2.7%, and European markets up 3.1%. US markets started the week at SPX 2659. Gapped up on Monday, hit SPX 2707, then did another 100-point selloff to 2604. If the market continues its 100-points drops, followed by 60+ point rallies, the 2594 pivot could be next and last for now. After that the market rallied into the close Monday, rallied again on Tuesday, then gapped up again on Wednesday hitting SPX 2737. Biggest rally (2604-2737) since the downtrend began.

Today we posted a tentative green Minor wave A at the SPX 2604 low. We posted this label for four reasons. 1. the short term down-100, up-60 pattern has changed. 2. the SPX crossed out 2723 reversal target. 3. the downward expanding diagonal looks complete at the lows. And 4. wave C (213) nearly equals wave A (230). Next we should see a 50% to 61.8% retracement of the entire SPX 2941-2604 decline: SPX 2773 – 2812. With the previous B wave at SPX 2817, the retracement may go a bit higher than 61.8%.

Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Short term momentum finally reached overbought after a huge double positive divergence. Best to your trading!

MEDIUM TERM: downtrend

LONG TERM: downtrend probable

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

About tony caldaro

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379 Responses to Wednesday update

  1. chandra d says:

    My Tuesday long call was doing good square 50 percent here and hold remaining

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  2. Theodore Lerts says:

    Bear stop runs blown out: check. Bulls all aboard: check. Fomo elevator overflowing: check.

    Get ready folks.

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  3. the30dayrule says:

    A big thank you to Tony Caldaro and his team for regurarly posting their views. I dont have such a long term view, 30days is my constraint and minimum target, I’m inclined to see the sell-off as a 1/A, and waiting to see how deep this rebound will go, and what final shape.. the market never gives too many clues at an early stage of a new move.. a zig-zag would be almost clichè but that’s what I’d go for as it is… next week with mid term elections and the new moon we’ll see what changes… overall up to the 61.2% retracement is my standard assumption.. the one thing I would rule out is a quick re-visit to the 2603 low… in time we’ll get there.. but rebound first… some of my views are expressed here for those who care

    https://the30dayrule.wordpress.com/

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  4. vivelaamo says:

    I see Holly still trolling the blog.

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    • Had you taken my trolling advice you too would be up hundreds of thousands. too bad bias and obstinate rigid thinking hold you back. BTW, just look at my TIMELY calls right before the BIG SWOOSH….. BTW even a child can look at these posts, register the timestamps, and say WOW, what a bunch of great calls. If that’s what TROLLING is then bring so more on board. I must conclude October wasn’t a great month for ya. just a hunch. But with the new alternate reality you must have done exceedingly well and I must have lost a ton even with my timely posts.

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  5. gtoptions says:

    Thanks Tony
    Trump must know exactly when to tweet. LMAO
    ES ~ Virtual Pivot Play 😉 ~ https://www.tradingview.com/x/YOntYHcF/

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  6. quickrick38 says:

    For this ‘b’ of ‘B’ I’m looking for a 61.8 or near 2666. Next target for the ‘C’ would then be 2828ES.

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