Tuesday update

SHORT TERM: new highs then pullback, DOW -33

Overnight the Asian markets lost 0.2%. Europe opened lower but gained 0.2%. US index futures were lower overnight, and the market opened 5 points below yesterday’s SPX 2481 record close. Right after the open, however, the market started to rise. Just past noon the SPX hit a new all-time high at 2491, and then started to pullback. The pullback lasted until 3:30 when the SPX hit 2470. Then a bounce into the close ended the day at 2475.

For the day the SPX/DOW lost 0.20%, and the NDX/NAZ lost 0.20%. Bonds lost 3 ticks, Crude slid 30 cents, Gold added $4, and the USD was higher. Medium term support drops back to the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: wholesale inventories at 10am.

The market opened lower today, made a low at SPX 2476 within the first 15 minutes, and then started to rally. Just past 11:30 the SPX broke through the OEW 2479 pivot range (2472-2486) on its way to 2491 just past noon. With the breakout of the pivot this uptrend, which started at SPX 2408 in early July, cannot be a B wave. As a result we updated the SPX hourly/daily charts to display Minute wave iii of Minor wave 5 underway. The previous uptrend/downtrend reversals have been downgraded from Minor 5 to Minute waves i and ii. With a Minute iii underway it suggests Minor wave 5, of Int. iii, is extending. Which is exactly what the DOW has been displaying for several months.

The short term count is not totally clear, but it does look like a possible 5 waves up from SPX 2408: 2432-2413-2484-2465-2491 to end a Micro 1. Micro 1 of Minute i was 77 points, and Micro 1 of Minute iii is currently 83 points. Short term support drops to the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum dropped from quite overbought to slightly oversold. Best to your saber rattling trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

Filed under: Updates