thursday update -- MrSwing

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thursday update
Jan 09, 2009

Tony

ELLIOTT WAVE LIVES ON
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SHORT TERM: market stabilizes after early selling pressure, DOW -27

Overnight the Asian markets were all lower. Europe opened lower and closed -0.60%. US index futures were lower overnight as well. At 7:00 the Bank of England lowered their prime lending rate to 1.5%, its lowest level in over 300 years. Yes, we're talking about the 17th century. At 8:30 the weekly Unemployment claims were reported at 467K v 491K. The market opened slightly lower from yesterday's close at SPX 907, and hit 897 by 10:30. A rally to SPX 908 followed, and then a retest of the lows occurred at 1:30. The market then turned around and made a slightly higher high on the day heading into the close. A quiet 13 point range ahead of the Non-farm payrolls report tomorrow morning. At the close the SPX/DOW were mixed, and the NDX/NAZ were +1.10%. Bonds were up about 3/4 points, Crude lost 45 cents, Gold rallied $17.00, and the Euro was higher. Support for the SPX remains at 848 and then 789, with resistance at 912 and then 935. Short term momentum spiked to oversold this morning and then rallied back to neutral. Tomorrow, Non-farm payrolls at 8:30, and then wholesale Inventories at 10:00.

The market found support this morning at the high of the last trading day of November, SPX 896, see SPX hourly chart. It retested that low in the afternoon and then rallied somewhat into the close. That could have been the end of our current 'b' wave, or it may be retested again in the next few days. We'll know for sure when the market starts impulsing. Today's small rally was not that impulsive. Tomorrow will be an interesting day. Best to your trading!

MEDIUM TERM: uptrend continues from SPX 741 low

LONG TERM: bear market rally

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