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wednesday update

2 July 2008, 1:34 pm
by
tony of the ELLIOTT WAVE lives on

SHORT TERM: market sells off again, DOW -167
Overnight the Asian markets were mostly lower, but India's BSE rallied and China's SSEC closed flat. Europe opened higher, but failed to sustain a rally closing -0.55%. US index futures traded higher overnight, and remained higher into the open despite the ADP jobs report dropping 79,000 in June. At the open the SPX hit 1292 and stayed in a narrow range. At 10:00 the Commerce Dept. reported factory orders were +0.6% in May. By 11:00 the market started to weaken, and a sharp drop to 1276 occurred by 12:30. By 2:00 the SPX had rallied back to 1284, but that rallied failed, and an even sharper drop followed into the close to SPX 1262. For the day the SPX/DOW were -1.65%, and the NDX/NAZ were -2.40%. Bonds gained 1/4 point, Crude made new highs +$3.25, Gold added $2.00, and the Euro was higher. Support for the SPX remains at 1261 and then 1240, with resistance at 1287 and then 1316. Short term momentum got overbought at the open, but turned lower. The near term indicators are still edging higher. Tomorrow the week ends in the US with non-farm payrolls at 8:30, and then the ISM services report at 10:00. While yesterday looked like classic bottoming action, today's selling is testing that possibility. Suggest keeping a close eye on the support pivots. Best to your trading!
MEDIUM TERM: downtrend trying to hold SPX 1261 low
LONG TERM: bear market


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