SHORT TERM: DOW breaks losing streak, DOW +59
Overnight the Asian markets lost 0.6%. European markets opened lower but closed +0.2%. US index futures were higher overnight, and the market opened higher at SPX 1340. The SPX had closed at 1338 yesterday. After an opening pop to SPX 1344 the market began to pullback. At 10:00 New home sales were reported lower: 350K vs 369K. Around 11:00 the SPX hit its low for the day at 1332 and began to rally. Nearing 3:00 the SPX hit the 1344 level again, and then pulled back to close at 1338.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.50%. AAPL’s decline contributed to 20 points of the NDX 18 point loss on the day. Bonds were flat, Crude gained 40 cents, Gold rallied $21, and the USD was lower. Medium term support remains at the 1313 and 1303 pivots, with resistance at the 1363 and 1372 pivots. Short term momentum is rising off of yesterday’s positive divergence. Tomorrow, weekly Jobless claims at 8:30 along with Durable goods orders. Then at 10:00 Pending home sales.
The market opened higher, sold off early, rallied back to the high of the day, before again pulling back in the last hour of trading. The counts we mentioned yesterday, on the SPX and DOW charts, are still in play. Yet this uptrend, despite the 11% probability of it being a B wave, still looks choppy. Especially after the recent decline.
With both the SPX 1325 level and SPX 1309 level offering potential uptrend support in an ongoing constructive uptrend pattern. We determined a break of the OEW 1313 pivot range, (1306 low end), may signal the uptrend has ended.
Short term support is at SPX 1333/38, 1324/27 and the 1313 pivot. Overhead resistance is at SPX 1342/47, (which we hit twice today), then the 1363 and 1372 pivots. Short term momentum has risen off yesterday’s positive divergence and ended the day at neutral. The short term OEW charts are still negatively biased with the swing level now around SPX 1346. Best to your trading!
MEDIUM TERM: choppy uptrend continues
LONG TERM: bull market