friday update -- MrSwing

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friday update
Aug 22, 2008

Tony

ELLIOTT WAVE LIVES ON
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SHORT TERM: Crude sells off on word of Russian pullback, DOW +198

Overnight the Asian markets were mixed, but Europe opened higher and closed +2.20%. Stocks opened slightly higher then rallied to 1293, the high for the day, by 10:30. At 10:00 Bernanke's speech on reducing systemic risk was released: http://www.federalreserve.gov/newsevents/speech/bernanke20080822a.htm. A pullback followed to 1283 by 12:00, the low for the day. Then the market edged higher, and close to the highs of the day entering the close. For the day the SPX/DOW were +1.40%, and the NDX/NAZ were +1.35%. Bonds lost ten ticks, Crude dropped $6.25, Gold slid $10.50, and the Euro was lower. Support for the SPX now bounces back to 1287 and then 1261, with resistance at 1316 and then 1327. Short term momentum closed at overbought levels, and the near term indicators are rising. An announcement was made this week, by the US Mint, that they were suspending the sales of the Gold Eagle coins due to lack of supply of refined Gold. Waited until it was confirmed by other sources: http://www.forbes.com/reuters/feeds/reuters/2008/08/21/2008-08-21T203934Z_01_N21515012_RTRIDST_0_GOLD-EAGLE-SHORTAGE-UPDATE-2.html. before mentioning it. Gold drops 20% from its all time highs and then the government suspends the minting of Gold coins. You be the judge. In regards to the markets. The DOW snapped back today after sitting under 11,500 for most of the week. This eliminates the downward pressure it was placing on the general market. The SPX tested an important support in the 1260's area tuesday thru thursday, held, and is now edging higher. Clearly this market is not ready to go down, yet.

MEDIUM TERM: uptrend high at SPX 1313

LONG TERM: bear market

CHARTS: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1606987