SHORT TERM: early market rally fades, DOW -37
Overnight the Asian markets were all lower. Europe opened higher but closed down 1.80%. US index futures were flat to higher overnight, and just before the open the FED announced the launch of its TALF program: http://www.federalreserve.gov/newsevents/press/monetary/20090303a.htm. The market gapped up at the open to SPX 712, but that was its high for the day. As the market started to move lower FED chairman Bernanke’s testimony was released: http://www.federalreserve.gov/newsevents/testimony/bernanke20090303a.htm, and Pending home sales were reported at -7.7% v +4.8%. Around noon the SPX hit 692, right at the 696 pivot, held and then started to rally. During the rally Auto sales were released by Ford -48%, and then GM -53%. By 2:30 the SPX hit 710 and then turned lower again heading into the close. For the day the SPX/DOW were -0.60%, and the NDX/NAZ were mixed. Bonds were flat, Crude rallied $1.25, Gold dropped $24.50, and the Euro was flat. Support for the SPX remains at 696 and then 644, with resistance at 717 and then 734. Short term momentum displayed a nice positive divergence at the lows, but the market did not rally much. Tomorrow, the ADP employment index at 8:15, ISM services at 10:00, and then the Beige book at 2:00.
Today the SPX moved right down to the 696 pivot and held support. The rally to 710 wasn’t much, but Tech displayed some resilience and continues to cushion this general market decline. When the SPX rallies back above the 734 pivot there’s a good chance that the downtrend should be over. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bear market
the ELLIOTT WAVE lives on 
Hi Mike,SPX 734 looks like an important pivot now.The washout in November (741) held that pivot.And now, we broke below it to 692.Yes … it appears when companies get so big, others come along and just want to take their spoils, as if they earned it.Stealing rather than earning their keep. Five DOW stocks under $10 … have never seen that!
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Tony. Yes, I see. We shall see what happens when we challenge 734. When/If this becomes support we may have something. Thanks, Mike
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>Did you try use more than 5 best bids/offers?The exchange (CME) only reports 5 best bids and 5 best offers.
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Inflection point. I will wait and see. Cash overnight. My gut tells me new lows though as well as corrective looking action off yesterdays lows.
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holding overnight? long or short?
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1208 1313 1440 1136 1576Serge,>1313,1440,1576 are tops what are 1208 and 1136? 1208 (near 1211), 1136 important intraday lows.1090 and 1076 is mirror point on my opinion.
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Tony, So far so good. Energy stocks strong and leading the way as you suggested. Gov may help financials eventually by changing accounting since they can\’t get it right by throwing money at it. I believe some gov. committee meets the 12th. If financials stop exploding we may just get your anticipated rally. GE trying to rally. A great american trajedy if it goes to zero due to inept management. Best, Mike
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Awesome rally, luv it
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Numerologist,Thanks. Did you try use more than 5 best bids/offers?
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