SHORT TERM: market awaits the ECB, DOW +12
Overnight the Asian markets dropped 1.2%. European markets opened lower but slipped just 0.1%. US index futures were relatively flat overnight again. The SPX opened unchanged from yesterday’s close at SPX 1405. After a pullback to SPX 1401 in the opening minutes the market tried to rally. By 10:30 the SPX hit yesterday’s 1409 high, and then pulled back again. After a dip to SPX 1403 the market bounced to 1408 by 11:30. Then another pullback to SPX 1401 followed by 2:00. A slight bounce into the close end ed the day at SPX 1403.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.20%. Bonds lost 1 tick, Cude added 25 cents, Gold slipped $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. Tomorrow, the ECB concludes its meeting before the market opens. Also, we have the ADP index at 8:15 and weekly Jobless claims at 8:30. Then at 10:00 ISM services.
The market opened flat today and remained within yesterday’s SPX 1397-1409 range for the entire day. Clearly this market is waiting for some sort of catalyst to clear this, now two week, contracting triangle in the SPX. Tomorrow the much awaited ECB meeting takes place, with a press conference shortly thereafter. This should be the catalyst.
Short term support remains at SPX 1402/03, SPX 1396/98 and the 1386 pivot. Overhead resistance is at SPX 1413/15, SPX 1422/27, and the 1440 pivot. Short term momentum spent the entire day right around neutral. The short term OEW charts need to rally above SPX 1406 to turn positive again. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market