monday update -- MrSwing

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monday update
Jul 15, 2008

Tony

the ELLIOTT WAVE lives on
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SHORT TERM: gap up opening fades, DOW -45

Overnight the Asian markets were mostly lower, as only China's SSEC closed higher. Europe opened higher and closed +0.75%. US index futures were higher overnight after the FED announced they would allow FNM/FRE to use the discount window: http://www.federalreserve.gov/newsevents/press/other/20080713a.htm.

At the open the SPX gapped up to 1254, just shy of fridays high, but that was the high for today. A gradual decline followed until about 12:00 when the SPX hit 1226. For the next four hours the market stayed in a trading range while touching the 1225/26 level a few more times. At the close the SPX/DOW were -0.65%, and the NDX/NAZ -0.95%. Bonds gained nearly 3/4 points, Crude was flat, Gold rallied $14.00, and the Euro was flat. Support for the SPX remains at 1219 and then 1179, with resistance at 1240 and then 1261. Short term momentum was heading lower into the close, as well as the near term indicators. Tomorrow in this options expiration week, June PPI and Retail sales will be announced around 8:30. Then FED chairman Bernanke begins his two day testimony to Congress at 10:00. Today's action was quite lackluster, especially after a hopeful gap up opening. Except for the occasional short covering, this market looks lifeless. Best to your trading!

MEDIUM TERM: downtrend low at 1225 still in place

LONG TERM: bear market

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