SHORT TERM: consolidation continues, DOW -10
Overnight the Asian markets gained 0.6%. European markets opened higher and gained 0.2%. US index futures were slightly lower overnight. At 8:30 weekly Jobless claims were reported lower: 361K vs 365K, as was the Trade deficit: -$42.9 bln vs -$48.7 bln. The market opened at one point below yesterday’s close at SPX 1401. At first it dipped to SPX 1400, and then began to rally. At 10:00 Wholesale inventories were reported lower: -0.2% vs +0.3%. The market rallied to SPX 1406, a point below the uptrend high, and began to pullback again. The pullback lasted until noon when the SPX hit 1399. Another rally attempt fizzled out at SPX 1405, then the market pulled back into a 1403 close.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.25%. Bonds lost 3 ticks, Crude added 25 cents, Gold rose $5, and the USD was higher. Medium term support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum touched overbought early, but spent most of the day around neutral. Tomorrow, Export/Import prices at 8:30, then the Budget deficit at 2:00.
The market opened about flat today, edged up above yesterday’s range, then went sideways for the rest of the day. The bullish uptrend count we have been tracking continues to look good while this market consolidates its recent gains. The recent 11 SPX point pullback fits within normal pullback parameters for this uptrend. And if it’s done, the market should make new highs shortly. The SOX index made a new high today, and 10YR yields rose to a new high for their uptrend as well. But keep in mind the OEW 1386, 1372, and 1363 pivot scenario noted yesterday.
Short term support remains at SPX 1402/03 and the 1386 pivot, with resistance at SPX 1413/15 and 1422. Short term momentum remains hovering around neutral. The short term OEW charts remain positive, with the swing point now around 1391. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market