SHORT TERM: market still choppy, DOW -33
Overnight the Asian markets gained 0.2%. European markets opened lower and lost 0.4%. US index futures were higher overnight, and the market opened higher at SPX 1448. The SPX had closed at 1444 yesterday. Within the first few minutes of trading the SPX hit 1452, the high for the day, and then began to pullback in another choppy session. At 10:00 the SPX hit yesterday’s close at 1444, bounced to 1450 by 10:30, then pulled back to 1440 by 11:30. After another rally attempt, this time to SPX 1445, the market pulled back again. By 3:00 the SPX had reached 1439, and then rallied to close at 1446.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.20%. Bonds gained 1 tick, Crude slid 75 cents, Gold slipped $2, and the USD was lower. Medium term support remains at the 1440 and 1386 pivots, with resistance at the 1499 and 1523 pivots. Tomorrow: ADP at 8:15, ISM services at 10:00, then the FOMC minutes at 2:00.
For the second day in a row, the market rallied at the open and made its high for the day before 10:00. Then it spent the rest of the day in pullback mode until nearing the close. This market appears to be looking for leadership. While market action has been quite choppy, since wednesday’s potential Intermediate wave iv low at SPX 1431. We continue to see these rallies and pullbacks as a base building process for eventually new bull market highs. The only thing that would change this view would be first a pullback to SPX 1436, and then below 1431. This would suggest the Int. iv pullback is still underway.
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 hit oversold during today’s pullback, then bounced over neutral at the close. The short term OEW charts are still in neutral with the swing level at SPX 1447. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market