monday update -- MrSwing

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monday update
Jan 05, 2009

Tony

ELLIOTT WAVE LIVES ON
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SHORT TERM: market pulls back as many return to trading, DOW -82

Overnight the Asian markets were mostly higher. Europe opened higher and closed +0.30%, US index futures were lower overnight and the market opened slightly to the downside. By 10:00 the SPX hit 920, and Construction spending was reported at -0.6% v -0.4%. The market stabilized and then worked its way higher into the afternoon. By 2:00 the SPX took out friday's 935 high by two points. At SPX 937 some short term and very short term negative divergences began to appear. Recently the market has been ignoring these divergnces. But with many of the traders back from holiday they may again start signalling short term moves. That was the high for the day as the market pulled back into the close. For the day the SPX/DOW were -0.70%, and the NDX/NAZ were -0.20%. Bonds were flat, Crude gained $2.00, Gold lost $20.00, and the Euro was lower. Support for the SPX remains at 912 and then 848, with resistance at 935 and then 961. Short term momentum put in a negative divergence at the highs for the day. Tomorrow, ISM services and Factory orders will be reported at 10:00. Then at 2:00 the FED releases the FOMC minutes. Monthly auto sales were reported today, and they were about the same as they have been for the past few months: down 30% to 40%. Short term the market looks like it has just completed a small A wave at today's highs. Support should be found around the 912 pivot. Best to your trading and in 2009!

MEDIUM TERM: uptrend from SPX 741 underway

LONG TERM: bear market rally

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