For the day the SPX/DOW were -2.70%, and the NDX/NAZ were -1.80%. Bonds gained 11 ticks, Crude lost $1.75, Gold dropped $22.00, and the USD was higher. Support for the SPX drops to 1146 and then 1136, with resistance now at 1168 and then 1176. Short term momentum hit extremely oversold at the low. Tomorrow, weekly Jobless claims at 8:30, then FHFA housing prices and Leading indicators at 10:00.
The market opened quietly enough and drifted lower awaiting the FED’s policy decision. After the announcement, the market bounced around and then had a waterfall last hour of trading. The decline from yesterday’s high at SPX 1220 to today’s low at 1166 is 54 SPX points. This is what we expected the first time the SPX hit 1220 on September 16th. Despite today’s selloff we are sticking with our count of the potential uptrend to SPX 1246 over the next few weeks. The initial high at SPX 1220 is still labeled as an Intermediate wave A, and the action since then as Intermediate wave B. As long as the market finds support within the 1168 pivot range, or the 1146 pivot range, this count still looks good. Remember, this market has sold off on every FED speech/statement since the last FOMC meeting.
Short term support is in the 1168 pivot range, the mid-1150′s, then the 1146/1136 pivot range. Overhead resistance is at the 1176 and 1187 pivot ranges. Short term this market is extremely oversold. Best to your trading!
http://caldaro.wordpress.com/2011/09/21/wednesday-update-306/
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