tuesday update -- MrSwing

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tuesday update
Feb 03, 2009

Tony

ELLIOTT WAVE LIVES ON
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SHORT TERM: despite bank/financial sector weakness market rallies, DOW +142

Overnight the Asian markets were mixed. Europe opened higher and closed +2.30%. US index futures were higher overnight and the market opened higher at SPX 830. A quick pullback followed to SPX 822 by 10:00. At this time Pending home sales were reported +6.3% v -3.7%. The market then rallied to SPX 833 by 11:30, and this was followed by another pullback to 825 by 1:00. Around noon Ford reported January auto sales -42%, then around 1:30 GM reported sales -49%. The market rallied nevertheless hitting SPX 843 by 3:30, reaching the 848 OEW pivot. Then the market eased back somewhat into the close. For the day the SPX/DOW were +1.70%, and the NDX/NAZ were +1.55%. Bonds were down about 1 1/4 points, Crude gained 95 cents, Gold lost $4.50, and the Euro was higher. Support for the SPX remains at 789 and then 768, with resistance at 848 and then 912. Short term momentum was overbought heading the close and stayed there. Tomorrow, the ADP employment index at 8:30, then ISM services at 10:00.

The Techs continue to support the market while the other two sectors we have beern observing, financials and commodities, continue to weaken. Today's rally pushed the SPX right into resistance near the 848 pivot, and the market is overbought short term. Best to your trading!

MEDIUM TERM: downtrend

LONG TERM: bear market

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