SHORT TERM: marginal new high then pullback, DOW -52
Overnight the Asian markets gained 0.1%. European markets opened lower and lost 0.1%. US index futures were lower overnight, and the market opened one point lower than friday’s close at SPX 1437. Within the first few minutes of trading the SPX dipped to 1435 and then tried to rally. At 10:30 it hit a new uptrend high at SPX 1439, and then began to pullback. At 3:00 Consumer credit was reported negative, have not seen this is a while: -$3.3 bln vs $6.5 bln. The market continued to head lower into a SPX 1429 close.
For the day the SPX/DOW were -0.50%, and the NDX/NAZ were -1.15%. Bonds gained 1 tick, Crude slipped 15 cents, Gold was $11 lower, 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. Tomorrow, the Trade deficit will be reported at 8:30.
The market opened mixed today. Notched a marginal new high at SPX 1439, the 1440 pivot range, and then pulled back. Initially the pullback was quite small, until it got some help from the negative Consumer credit report at 3:00. Then it turned into a normal 10+ point pullback. We have labeled today’s SPX 1439 high as the end of Minute wave iii. Minute iv should be underway now.
Short term support is at SPX 1422/27 and then 1413/16, with resistance at the 1440 pivot then SPX 1463/64. Short term momentum declined from friday’s extremely overbought condition to quite oversold today. The short term OEW charts remain positive with the swing point now around SPX 1421. Best to your trading!
MEDIUM TERM: new uptrend high SPX 1439
LONG TERM: bull market