friday update -- MrSwing

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friday update
Nov 01, 2008

Tony

ELLIOTT WAVE LIVES ON
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SHORT TERM: market rallies to end a nasty October, DOW +144

Overnight the Asian markets were mixed, Europe opened higher and closed +2.2%. US index futures were lower overnight and at 8:30 the core PCE was reported unchanged at +0.2%, and Consumer spending was reported the weakest since 2004 -0.3%. Non-farm payrolls is next friday, sorry. The market gapped down slightly at the open and continued to 945 by 10:00. That was the low for the day. At 10:00 the U of M was reported at 57.6 vs 57.5, as the market bottomed and started to rally. By 1:30 the SPX had made its way through the 961 resistance pivot to 981. After that the market become choppy. By 2:30 the SPX hit 970, after FED chairman Bernanke's speech was released: http://www.federalreserve.gov/newsevents/speech/bernanke20081031a.htm. A rally followed to 984 by 3:00, the high for the day. Then the market bounced around between these last two levels into the close. For the day the SPX/DOW were +1.55%, and the NDX/NAZ were +0.80%. Bonds dropped 15 ticks, Crude rallied $1.50, Gold slid $14.00, and the Euro was lower. Support for the SPX notches up to 961 and then 935, with resistance at 990 and then 1018. Short term momentum was overbought at the highs today, and then eased back some into the close. This rally continues to edge higher, and it appears we left this nasty downtrend at tuesday's low of 845. We still have the 990 resistance pivot to overcome, but so far so good. Best to your weekend!

MEDIUM TERM: downtrend low at SPX 840

LONG TERM: bear market, trying to establish an uptrend

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