SHORT TERM: consolidation continues, DOW -4
Overnight the Asian markets were relatively flat. Europe opened lower and ended -0.3%. US index futures were relatively flat overnight as well. The market opened at SPX 1416, then hit 1417 before pulling back to 1412 by 10:30. Then it tried to rally. The rally, if one could call it that, lasted for the rest of the day. The SPX worked its way back to the 1418 level, and closed there.
For the day the SPX/DOW were flat, and the NDX/NAZ were mixed. Bonds gained 2 ticks, Crude slipped 5 cents, Gold rose $6, 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 declined early, from thursday’s extreme overbought condition, then moved higher late.
The market opened slightly lower today, pulled back, then rose back to friday’s close. The entire range on the day was 6 SPX points. The pullback from friday’s uptrend high, SPX 1419, is thus far a minor one and only 7 points. Apple broke the all time record today for market capitialization by a single stock, in excess of $600 bln. When AAPL is rising every day, like it has recently, usually the market remains with a positive bias.
Short term support remains at SPX 1413/15 and 1402/03, with resistance at SPX 1422 and the 1440 pivot. Short term momentum ended the day slightly overbought. The short term OEW charts remain positive, from under SPX 1370, with the swing point now 1408. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market