Market Weekend Update - SHORT TERM By: Tony Caldaro | October 21, 2017
We tracked the waves for Micro 3 with the following completed, or nearly completed, pattern: 1) 2455, 2) 2428, 3) 2480-2447-2509-2488-2564, 4) 2548, and 5) 2575? A very nice 6% rally for a wave of such a small degree. But as noted above, negative divergences are beginning to setup on the daily charts. Similar to recent Micro wave highs. A Micro 4 pullback from current levels would not be a surprise.
When we compare Minute iii to Minute i. We find similar steep declines for Micro 2, but a shallow decline for Micro 4 during Minute i. We would therefore expect the upcoming Micro 4 to be also shallow, i.e. 20-30 points. Then Micro 5 should reach at least the OEW 2594 pivot before it concludes. Let’s see how this unfolds. Short term support is at SPX 2548 and the 2525 pivot, with resistance at the 2575 and 2594 pivots. Short term momentum ended the week quite overbought. Best to your trading!
FOREIGN MARKETS
Asian markets were mostly higher and gained 0.6%.
European markets were mixed and lost 0.2%.
The DJ World index gained 0.2%, while the NYSE gained 0.6%.
COMMODITIES
Bonds continue to downtrend and lost 0.8%.
Crude continues to uptrend and gained 0.8%.
Gold remains in a downtrend and lost 1.9%.
The USD remains in an uptrend and gained 0.2%.
NEXT WEEK
Friday night: a speech from FED chair Yellen: https://www.federalreserve.gov/newsevents/speech/yellen20171020a.htm. Wednesday: durable goods orders, and new home sales. Thursday: weekly jobless claims and pending home sales. Friday: Q3 GDP (est. 2.6%) and consumer sentiment. Best to your weekend and week!
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