Wednesday update

SHORT TERM: gap up opening to new highs, DOW +58

Overnight the Asian markets gained 1.4%. Europe opened higher and gained 0.6%. US index futures were higher overnight, and at 8:15 the ADP was reported higher. The market gapped up at the open to SPX 2585, reached 2588 by 10am, then started to pullback. At 10am ISM manufacturing was reported lower. The pullback continued until the market closed the opening gap at SPX 2575 – yesterday’s close – around 1:30. At 2pm the FED released its FOMC statement: https://www.federalreserve.gov/newsevents/pressreleases/monetary20171101a.htm. Then the market bounced to SPX 2582 in the last hour, before dipping to close at 2579.

For the day the SPX/DOW gained 0.20%, and the NDX/NAZ gained 0.10%. Bonds gained 1 tick, Crude slipped 5 cents, Gold rose $4, and the USD was higher. Medium term support remains at the 2575 and 2525 pivots, with resistance at the 2594 pivot. Tomorrow: weekly jobless claims at 8:30.

Wild day! After posting yesterday a potential Minute iii top at SPX 2583, if the SPX breaks 2568. The market gapped up this morning, opening at new highs, and eliminating that possibility. After that the market pulled back and completed closed the opening gap. Despite the volatility still cannot quantify any of these waves, except the rally from SPX 2544-2588. For now Micro 5 is still underway, and Minute iii is not yet done. Short term support is at the 2575 pivot and SPX 2544, with resistance at the 2594 pivot. Short term momentum was quite overbought during today’s rally then ended at neutral. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

Filed under: Updates