Wednesday update

SHORT TERM: gap up opening then pullback, DOW +54

The first three days of this week display Asian markets with an 0.8% loss, and European markets with a 0.1% gain. US markets started the week at SPX 2914. After a gap up opening Monday and rally to SPX 2937, the market dropped to 2918 by the end of the day. Tuesday traded in between those two levels. Then today, another gap up opening with a rally to SPX 2940, before pulling back in the afternoon. This certainly sounds positive.

Three of the four major indices, however, are all in different wave counts. The NDX/NAZ are in downtrends, along with the R2K and recently the TRAN. While the SPX/DOW are still in uptrends, and the DOW has been making new all-time highs the last two days. Quite a mix. Almost as bad as the divergence between the US and the rest of the world.

We updated the DOW charts to display a Minor wave 3 that is still underway. The SPX chart has been updated to suggest its Minor 3 may not have ended yet. The NDX/NAZ charts remain the same. If either can confirm an uptrend, this would suggest an extending Intermediate wave v. Short term support is at the 2884 and 2858 pivots with resistance at the 2929 and 2995 pivots. Short term momentum ended the day nearly oversold. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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