SHORT TERM: market consolidation reaches day 4, DOW -39
Overnight the Asian markets were relatively flat. European markets opened lower and declined 0.4%. US index futures were also lower overnight, and the market opened slightly lower at SPX 1404. The SPX had closed at 1406 friday. In the opening minutes the market dipped to SPX 1402, then bounced to 1405 by 10:00. After that the market pulled back to SPX 1397 by 11:00, and tried to rally again. The rally carried the SPX back to 1405 by 3:00, then dipped to end the day at 1404.
For the day the SPX/DOW were -0.20%, and the NDX/NAZ were +0.15%. Bonds lost 5 ticks, Crude slipped 10 cents, Gold slid $11, and the USD was lower too. Medium term support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum hovered around neutral for most of the day, and was eding higher in the close. Tomorrow, Retail sales and the CPI at 8:30, then Business inventories at 10:00.
The market opened slightly lower today, dipped, then rallied. But it stayed within friday’s SPX 1396-1406 range. In fact, the market has stayed within that range for the past four trading days. Exciting isn’t it.
After reviewing the charts this morning. We updated the SPX hourly chart with a potentially bullish count, which should lift this market to new bull market highs. From the SPX 1329 Minor wave 2 low, we can now count four Minute waves: 1392, 1355, 1407 and 1396. This would suggest the market is in the early stages of a Minute wave v advance which should carry the SPX to the 1440 pivot.
Short term support remains at SPX 1402/03 and the 1386 pivot, with resistance at SPX 1413/15 and 1422. Short term momentum is rising. The short term OEW charts remain positive with the swing point now around SPX 1396. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market