thursday update -- MrSwing

You Are Here: Home > Articles > Commentary > thursday update

thursday update
Feb 19, 2009

Tony

ELLIOTT WAVE LIVES ON
More articles

Font Size:

SHORT TERM: DOW closes at new bear market low, DOW -90

Overnight all the Asian markets were higher. Europe opened higher and closed +0.25%. US index futures were higher overnight as well, and at 8:30 the weekly unemployment claims came in unchanged at 627K v 627K. Also at 8:30 the PPI was reported higher, +0.8% v. -1.9%. The market opened higher, hitting SPX 797 in the opening minutes, but that was the high for the day. When the financials started to selloff the market began pulling back. At 10:00 Leading indicators were reported +0.4% v +0.3% and the Philly FED was -41.3% v -24.1%. By noon the SPX hit 782, just above yesterday's low of 780, and the market rallied. But the rally was short lived hitting 791 by 1:30. Then the market turned lower and hit a new downtrend low at SPX 777 just before the close. For the day the SPX/DOW were -1.20%, and the NDX/NAZ were -1.70%. Bonds lost one point, spot Crude rallied $4.25, Gold slipped $4.00, and the Euro was higher. Support for the SPX drops to 768 and then 734, with resistance now at 789 and then 848. Short term momentum rallied over neutral early and then closed in oversold territory. Tomorrow is options expiration friday, and the CPI will be reported at 8:30.

This market continued to work its way lower, albeit quietly. The SPX made a new low for the downtrend today at 777, its low for the bear market is 741. The DOW however made a new intraday low and closing low for the bear market. Meanwhile, the NDX/NAZ remain quite a bit above their bear market lows. Daily momentum is starting to get oversold and is now worth watching. Tomorrow is options expiration, so be prepared for anything. Best to your trading!

MEDIUM TERM: downtrend

LONG TERM: bear market

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