SHORT TERM: pullback continues, DOW -36
Overnight the Asian markets lost 1.4%. European markets opened lower and lost 0.5%. US index futures were lower overnight, as well, and the market opened lower at SPX 1353. The SPX had closed at 1355 on friday. Within the opening minutes the SPX touched 1355 and then pulled back to 1347 by 10:30. A rally attempt to SPX 1352 followed by 11:00. But the market dipped again to retest SPX 1347 by noon. Another rally followed to SPX 1353 by 1:30. But it was followed by a pullback to 1348 by 2:30. At 3:00 Consumer credit was reported higher: $17.1 bln vs $6.5 bln. The market then bounced again heading into the close to end the day at SPX 1352.
For the day the SPX/DOW were -0.20%, and the NDX/NAZ were -0.15%. Bonds gained 6 ticks, Crude rallied $1.25, Gold added $4, and the USD was lower. Support for the SPX remains at the 1313 and 1303 pivots, with resistance at the 1363 and 1372 pivots. Short term momentum is displaying a positive divergence at today’s lows. Tomorrow the economic slate is clear.
The market opened lower, then dipped down 1 point below friday’s low to SPX 1347. Finding support at the SPX 1342/47 range the market tried to rally a couple of times with not much upside progress. Overall today looked like a consolidation day before the market’s next move. Naturally, with the market in an uptrend, we expect the next move to be higher. Once the SPX clears 1358 it should be on its way. However, after reviewing a few technicals we would like to see the SPX hold above 1339. Should it break this level then there could be more downside ahead.
Short term support remains at SPX 1342/47 and then 1334/38. Short term resistance is at the OEW 1363 and 1372 pivots. Short term momentum displays a positive divergence at today’s lows. The short term OEW charts ended the day just above neutral with the swing point around SPX 1350. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market