Intra-Day Update: Ignorenomics

UPDATE 9:49am EST: The futures were down quite a bit overnight due to all this:

• Durable-Goods Orders in U.S. Fall Twice as Much as Forecast on Sales Slide
• U.S. Consumer Spending Falls 1%, Most in Seven Years, as Recession Deepens
• Pimco, Franklin GM Debt May Lose 75% of Face Value in Government Aid Deal
• Daimler Says Cerberus’s Demands Imperil Sale of Remaining Chrysler Stake
• U.S. Banks Face $44 Billion of Writedowns in Fourth Quarter, Whitney Says
• Toyota’s Credit Rating Cut to AA From AAA by Fitch as Auto Sales Decline
• Half of Commodity Shippers Likely to Breach Loan Conditions, Nordea Says

Guess, none of that matters anymore as we’re still hovering at 846 rallied to 849 right now. Here are the RLs for you guys:

UPDATE 11:50am EST: Call it what you will but the uptrend is continuing, obviously. I would be very cautious about jumping into the short side as the next RL is around 906 (see chart above). Again, please note that the continued positive breadth indicates that we are in intermediate wave (4). However, it’s very interesting to note the velocity of this move. (4) is supposed to be a multi-month pattern – so, as it’s making so many head waves in the past few days this gives additional credence to the notion that we are in for a multi-week sideways pattern. How’s this – it might go to 906 – reverse – go to 799 or 763 – reverse – rinse – lather repeat. Could be fun to play if done right – Berk and I are on the case – more later.

UPDATE 12:50pm EST: Berk here.  In checking an hourly chart, I am seeing 5 waves putting up their final touches on the rally from the bottom, and right into the resistance level specified on Monday.  Making a strong case forming for a little short action here.  There might be one last thrust towards 1200 in $NDX, but we will take it as it comes.  I have also noted that the $SPX continues to lead the $NDX.  Be advised.

$NDX - 5 up into resistance!

UPDATE 1:57pm EST: Sorry for the little outage we just had. My hosting company is complaining that we had too many database queries as soon as the server was up again – LOL 🙂 Looks like we’re getting some serious traffic, might have to upgrade soon.

UPDATE 2:22pm EST: I set up a cache for the site – should be faster now. Let me know what you guys think.

UPDATE 3:27pm EST: We just touched 886 and bounced back a little, which is strange as it’s actually a long RL. Question here is now – are we getting 906? Again, look above for the daily RL chart.

UPDATE T minus 7: I would strongly discourage everyone from holding positions over Turkey Day. We are in limbo right now and although this market remains extremely overbought it can continue its rally on Friday. You have been warned.

UPDATE Closing Bell: Happy Thanksgiving Everyone! I’ll be here on Friday with an intra-day update. Until then – try not to overdose on tryptophan.