Wednesday update

SHORT TERM: gap up opening, DOW +545

For the first three days of the week Asian markets lost 0.8%, and European markets gained 0.5%. US elections ended in a split decision. The Democrats took control of the House, and the Republicans maintained control of the Senate. The market anticipated and obviously liked the result. After last Friday’s pullback low to SPX 2700 the market has soared. It closed at SPX 2723 on Friday, SPX 2738 on Monday, SPX 2755 on Tuesday, and SPX 2814 on Wednesday after hitting 2815. Quite a rally in just a few days.

Out short term count remains the same. From the Int. a low at SPX 2604 in late October, the market has rallied in a zigzag to SPX 2757. Pulled back to SPX 2700. And has now rallied to SPX 2815. Our initial resistance levels for this entire advance were: 2773, 2812, and possibly a little bump over the mid-October 2817 high. With the first two already accomplished the third appears to be next. There is also the possibility of this C wave equaling the A wave (2604-2757), which would occur at SPX 2853. Between these Fibonacci levels, and the OEW pivots, this rally should run into resistance in the coming days. Short term support is at the 2798 and 2780 pivots, with resistance at the 2835 and 2858 pivots. Short term momentum ended the day extremely overbought. Best to your trading!

MEDIUM TERM: potential uptrend

LONG TERM: probable downtrend

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

About tony caldaro

Investor
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318 Responses to Wednesday update

  1. Hi
    SSEC broke 22 years closing trendline
    https://invst.ly/969st
    DAX broke main trendline
    https://invst.ly/969vz
    NASDAQ
    https://invst.ly/961sw

  2. fionamargaret says:

    From my mailbox…thanks to Colin Twiggs, Tom McClellan and the McVerry Report.

    http://tradingdiary.incrediblecharts.com/

    http://deflationland.blogspot.com/2018/11/point-of-recognition.html?aaReferenceFrom=mcverryreport.com

    https://www.mcoscillator.com/learning_center/weekly_chart/sunspots_and_the_stock_market_a_weak_relationship/

    Thanks Tony…and everyone xx

    You all would have liked my older sister, a mathematician like my mother, but she died.
    I was a child of my father and grandfather, quixotic, enquiring, passionate….and different..

    • fionamargaret says:

      • fionamargaret says:

        Reading my comment now, it was not meant to depress you, just a fact. (maybe too much emotion involved in the copywriting for Armistice Day). It was quite a long time ago.
        She was staid, dependable and not given to the writing of music, painting or working permutations in her head…surely a better fit for OEW.
        My mother was a mathematician, but also a botanist. I wonder if that was because her dad was the aforementioned apothecary..
        Anyways bombs and plants…..x

        Rachmaninoff’s 2 is played by the winner of the Van Cliburn Award.

  3. valunvstr says:

    50% Levered trade (150% long) has been closed (10/26 – 11/9). Leverage removed and remain 100% long. Will continue to lever when proper oversold conditions are met.

    Trade Details: RYTNX

    10/26: bought at close at 104.66 (as I mentioned in a prior update and started a whole mess of a “conversation” with AAMichael

    11/9: sold today at close 114.48

    Total Return: 9.38%

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