SHORT TERM: stocks close lower on light volume
The market opened to the downside this morning despite gains in the overseas markets. After a lackluster real estate report by the NAR at 10:00, the market bottomed around SPX 1467 just past 11:00. A midday rally to 1475 did not hold, and the market made new lows for the day going into the close. At the close the SPX/DOW were down 0.60%, and the NDX/NAZ were 0.65% lower. Bonds traded over 1/2 point higher, Crude reversed closing up 95 cents, Gold was $1.50 lower, the Euro was lower. After friday’s attempt to reach resistance at 1484, and a 61.8% retracement of the entire decline, the market turned lower for the first time since this rally began. The lower trendline of the rising wedge we have been tracking, was been broken to the downside in the last hour of trading. This could mean some significant selling is just ahead. Support remains at 1462 and then 1438, with resistance at 1484 and then 1506. Short term momentum continues to decline. Best to your evening!
MEDIUM TERM: correction
LONG TERM: bullish.