SHORT TERM: consolidation continues, DOW +43
Overnight the Asian markets lost 0.6%. European markets opened lower and declined 0.3%. US index futures were lower overnight as well. At 8:30 Export (-0.3% vs -1.4%) /Import (-0.4% vs -0.3%) prices were reported still declining. The market opened lower at SPX 1399 and dipped to 1396 in the opening minutes. The SPX had closed at 1403 yesterday. Then after barely touching oversold the market tried to rally. At 10:30 the SPX hit 1402, then pulled back to 1397 by 11:00. At 2:00 the Budget deficit was reported lower: -$69.6 bln vs -$129.4 bln. Heading in to the close the SPX hit 1406 and closed there.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were +0.10%. Bonds gained 6 ticks, Crude was flat, Gold added $2, and the USD was lower. 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 oversold before rising to overbought again. Today the WLEI was reported unchanged at 48.7%.
The market opened lower today, retested wednesday’s SPX 1396 low, then rallied late to end the week 1 point below the uptrend high. Oddly enough the entire range for the week was only 13 SPX points, and all above last friday’s 1391 close. Reviewing all the charts for the weekend update. Best to yours!
MEDIUM TERM: uptrend
LONG TERM: bull market