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Re: DiscoverGold post# 71685

Sunday, 10/28/2018 10:17:49 AM

Sunday, October 28, 2018 10:17:49 AM

Post# of 76351
Market Weekend Update - Short Term
By: Tony Caldaro | October 27, 2018

Initially we all thought the market would offer an orderly decline for this wave A downtrend. This week’s activity throws that assumption to the wind. This market is acting like 3%/4% moves mean nothing. The only short term count we can currently offer is on the hourly/daily charts: an a-b-c down. The first decline was 230 points (2941-2711). Then after a bounce to SPX 2817, the current decline is 189 points (2817-2628). About 41 points away from being equal: which is SPX 2587. This also happens to be in the range of the next lower pivot: 2594. If the market continues its 100-points drops, followed by 60+ point rallies, the 2594 pivot could be next and last for now.



Technically the market continues to display positive divergences during these declines. We now have a double positive divergence on the SPX/DOW hourly charts. And positive divergences on all four major indices daily charts. They have not worked thus far, except to set up sharp rallies. But they usually do help identify downtrend lows. Keep an eye on those pivots. Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Best to your trading!

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Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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