TRADING 04 FUTURES

[TREND1]

tuesday update by tony caldaro


SHORT TERM: new uptrend highs, DOW +72

Overnight the Asian markets gained 0.8%. European markets opened higher and gained 1.0%. US index futures were relatively flat overnight, and the market opened a point lower than yesterday's SPX 1366 close. In the first few minutes the market dipped to SPX 1364, and then began to rally.
At 10:00 Factory orders were reported higher: +0.7% vs -0.6%. Monthly Auto sales were also higher: F +7% and GM +16%. The rally continued until 11:30 when the SPX hit 1375, clearing the 1363 pivot and entering the 1372 pivot range. A pullback followed to SPX 1370 by 12:30. Then the market rallied into a SPX 1374 close.

For the day the SPX/DOW were +0.60%, and the NDX/NAZ were +0.80%. Bonds lost 11 ticks, Crude surged $3.80, Gold rallied $24, and the USD was lower. Support for the SPX jumps to the 1372 and 1363 pivots, with resistance at the 1386 and 1440 pivots. Short term momentum is displaying a negative divergence. The market closed early today ahead of tomorrow's Independence day holiday. Cash markets will open again on thursday.

The market opened flat today, rallied to new uptrend highs at SPX 1375 and just about closed there.

The day ended with negative divergences across all timeframes including daily. However, with the cash market closed tomorrow and foreign markets open, these divergences may not mean much yet. On thursday the ECB meets, and will likely conclude before Wall Street opens.

July 5th should be an interesting day.


On the world stock market scene, 85% of the world's markets are now in confirmed uptrends. Looks like more upside is ahead in the weeks, months to come. Short term support is now at the 1372 and 1363 pivots, with resistance at the 1386 pivot and SPX 1402/03.

The short term OEW charts remain positive from under SPX 1330, with the swing point now at 1344. Best to your holiday!

MEDIUM TERM: uptrend

LONG TERM: bull market

CHARTS: http://stockcharts.com/public/1269446/tenpp