SHORT TERM: market gaps down, DOW -101
Overnight the Asian markets lost 2.2%. European markets opened lower and dropped 1.7%. US index futures were significantly lower overnight as well. At the open the market gapped down to SPX 1348 and continued lower. The SPX had closed at 1363 on friday. Nearing 10:00 the SPX hit its low for the day at 1338, with the most oversold hourly RSI reading in quite some time: 3%. Then the market started to rebound. With a couple of 4 point pullbacks along the way the SPX hit 1353 just before the close, and ended the day at 1351.
For the day the SPX/DOW were -0.85%, and the NDX/NAZ were -1.15%. Bonds gained 5 ticks, Crude dropped $3.50, Gold slid $6, and the USD was higher. Medium term support for the SPX is at the 1313 and 1303 pivots, with resistance at the 1363 and 1372 pivots. Short term momentum hit extremely oversold this AM and bounced. Tonight, a speech from FED governor Raskin at 7 PM. Tomorrow, a speech from FED chairman Bernanke at 8:45, then FHFA housing prices at 10:00.
The market gapped down at the open today for the second day in a row. The decline took the SPX to the upper end of the 1333/1338 support zone. Then with the hourly RSI at 3, extremely oversold, the market started to rebound. The rally lasted throughout the day as the market recouped about half of its losses when hitting SPX 1353 just before the 1351 close. Financials have dropped over 1% for the third day in a row. The Semi’s may have completed their pullback at today’s low. This choppy uptrend continues.
Short term support is at SPX 1342/47, 1333/38 and 1324/27. Overhead resistance is at the 1363, 1372 and 1386 pivots. Short term momentum rebounded to near neutral after hitting extremely oversold. The short term OEW charts swung into a negative bias today when the market opened under SPX 1360, and ended that way with the swing level now around 1358. Best to your trading!
MEDIUM TERM: choppy uptrend continues
LONG TERM: bull market