friday update -- MrSwing

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friday update
Dec 06, 2008

Tony

ELLIOTT WAVE LIVES ON
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SHORT TERM: market rallies after touching the weeks lows, DOW +259

Overnight the Asian markets were mixed. Europe opened lower and closed -3.35%. US index futures were lower overnight, and at 8:30 the monthly jobs report came in far worse than many expected: http://www.marketwatch.com/news/story/us-economy-sheds-533000-jobs/story.aspx?guid=%7B5446C124%2D6428%2D4C60%2D8CB9%2D30505CCA12AA%7D&siteid=bnbh. The job loss was 530K v 320K, and the unemployment rate is now 6.7%. Index futures bounced around nearing the open and the market traded relatively flat before turning lower. At 10:00 MBA announced record housing foreclosure and delinquency numbers: http://www.marketwatch.com/news/story/us-foreclosures-mortgage-delinquencies-hit/story.aspx?guid=%7B2C3849BF%2DC470%2D4B89%2DB5FF%2D93ED978EC696%7D&siteid=bnbh. By 10:30 the market bottomed at tuesday's low, SPX 818, and started to rally. By 2:00 the SPX was making new highs for the day at 851, before pulling back to 840 by 2:30, and then rallying again. At 3:00 Consumer credit was announced to have contracted -$3.5 bln v +$6.8 bln. After a small pullback the market shrugged off that news and continued higher, hitting SPX 879 just before the close. For the day the SPX/DOW were +3.35%, and the NDX/NAZ were +4.40%. Bonds lost about 1 1/4 points, Crude dropped $2.00, Gold slipped $7.00, and the Euro was lower. Support for the SPX jumps back up to 848 and then 789, with resistance still at 912 and then 935. Short term momentum was oversold at today's lows and ended overbought after the rally. Certainly a positive turn of events today. Best to your weekend!

MEDIUM TERM: downtrend low at SPX 741

LONG TERM: bear market rally still underway

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