SHORT TERM: market ekes out a gain, DOW +4
Overnight the Asian markets were mostly lower with only Hong kong’s HSI displaying a gain. Europe opened mixed and closed mixed. US index futures were lower overnight but rallied heading into the open and the market opened unchanged. A small bounce up, and then a pullback into 10:00, put in the low for the day at SPX 1275. At 9:45 the Chicago PMI was announced improving at 49.6%, but still contracting. Failing to take out fridays low at 1272, the market rallied until 1:00 as Crude sold off, putting in the high for the day at 1290. After that the market created a zigzag into the close to end the day slightly positive. At the close the SPX/DOW were +0.10%, and the NDX/NAZ were -1.00%. Bonds gained about 1/4 point, Crude was 25 cents higher, Gold lost $2.50 and the Euro was lower. For the month the SPX/DOW were -9.4%. Support for the SPX remains at 1261 and then 1240, with resistance at 1287 and then 1316. Again today the market failed to break through the 1287 pivot. Short term momentum moved up to neutral during the rally and ended there. The near term indicators edged slightly higher as well. Tomorrow June ISM and construction spending at 10:00. Not much of a relief rally today off friday’s 1272 low, only about 18 points. Would have expected a bit more to complete Minute wave iv. Best to your trading!
MEDIUM TERM: downtrend continues
LONG TERM: bear market