SHORT TERM: market pullback continues, DOW +12
Overnight the Asian markets lost 0.3%. Europe opened lower and lost 0.6%. US index futures were lower overnight as well. At 8:30 the Q2 current Account deficit decreased: -$117.4 bln vs -$137.3 bln. The market opened at yesterday’s SPX 1458 low, dipped to 1456, and then tried to rally. At 10:00 the NAHB index was reported at its highest level in six years: 40 vs 37. Around 11:30 the rally ended at SPX 1461 and the market started to pullback. The pullback was minor, in this quiet trading day, as the SPX hit 1457 by 2:00. Then the market just drifted up to end the day at SPX 1459.
For the day the SPX/DOW were mixed, and the NDX/NAZ were mixed. Bonds gained 8 ticks, Crude dropped $1.10, Gold gained $13, and the USD was higher. Medium term support remains at the 1440 and 1386 pivots, with resistance at the 1499 and 1523 pivots. Tomorrow: Housing starts and Building permits at 8:30, then Existing home sales at 10:00.
The market opened lower today, hit a new pullback low at SPX 1456, then traded in a narrow range for the rest of the day. This pullback has now extended to 19 SPX points (1475-1456), but it held the 1463/64 pivot support today at 1456. Thus far, the past three days look like a consolidation period after new bull market highs. Nevertheless, we continue to monitor the fibonacci 1463/64 pivot range, (1456-1471), to determine the markets next short term move. Keep in mind, any futher pullback will probably find support at the 1440 pivot. And, any breakout will encounter resistance at the 1499 pivot.
Short term support remains at the 1440 pivot and SPX 1422/27, with resistance at SPX 1463/64 and the 1499 pivot. Short term momentum touched oversold again today then bounced to neutral. The short term OEW charts remain positive from SPX 1412, with the swing point now around 1448. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market