Market Update

The Fed day 1Correction to SPX 880 going into the FOMC announcement?
* Markets closed below the pivots, SPX 893.04 LOD, which I noted during the QOE week as noted: a confirmation for a meaningful correction, e.g. breaking below the lows of the last week: SPX 900, DOW 8450, Nasdaq 1780, and Qs 35.40.

* SPX 880 +/- is the next pivot which will lead to the next target SPX 750.

* Major indexes SPX, DOW, TRAN, BKX, and XBD closed below primary supports and ST price actions are now showing downside momentum.

* Intraday 60min price actions are now becoming oversold, however, showing negative divergences to downside with extended corrective impulse wave.

* ST A-B-C correction scenario is currently wave B correction to 850-

* Correction to DOW 7500, SPX 750, QQQQ 30.50 into mid July is ideal, however, markets could hold up until Q2 report to show false hope financial reports.

* Realistic: Bearish case is intermediate corrective wave 5 to SPX 666/555.


DOW daily

* DOW 8339.01* Dow closed below uptrend support

* 8200 support showing H&S formation

* Daily momentum turned to downside with a trend break.

* 60min is becoming oversold however downside momentum could carry strong downside trend to 8200.

* Markets are very overbought on weekly.* Ideally, a correction to DOW 7500, SPX 750, QQQQ 30.50 into mid July is the best case scenario.


6/22/2009

* 10yr 3.72
* 10yr 3.50 pivot

* Rising interests rate

* Rising energy cost: Gas price ==> squeezing consumer

* Rising trillions of debt* Comparatively, interest rate is rising faster than housing recovery.

* HGX housing 77.09