wednesday update -- MrSwing

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wednesday update
Oct 01, 2008

Tony

ELLIOTT WAVE LIVES ON
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SHORT TERM: volatile start, but market ends on pause, DOW -20

Overnight the Asian markets were all higher rebounding with the US yesterday. Europe opened higher but closed mixed. Last night it was reported that the Senate plans to vote on the "bailout plan" later today. This morning ADP reported a slight drop of 8K in private sector employment. Nevertheless, the market was trading lower before the open and gapped down to SPX 1159 as trading began. At 10:00 ISM manufacturing reported a sharp drop to 43.5%, the biggest one month drop in over 20 years. The market continued lower on the news, but made its low for the day at SPX 1141 by 11:00. After that a sharp rally followed in the next two hours as the market got back to unchanged and SPX 1167. In the meantime, Ford reported a 35% drop in Sept. auto sales, and GM a 16% drop. By 1:30 the SPX pulled back to 1150, but then rallied back to 1167 before easing some into the close. For the day the SPX/DOW were -0.30%, and the NDX/NAZ were -1.20%. Bonds added about 21 ticks, Crude dropped $2.25, Gold slipped $5.25, and the Euro was again lower. Support for the SPX remains at 1146 and then 1136, with resistance at 1168 and then 1179. Short term momentum traded around neutral most of the day, while the near term indicators rose to neutral. Tonight the Senate plans to vote on the "bailout plan". Tomorrow the weekly unemployment report will be released along with factory orders. Not much changed today as the market finished about where it started. Best to your trading!

MEDIUM TERM: thus far, downtrend low at SPX 1106

LONG TERM: neutral to bullish, awaiting a Primary wave B rally

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