SHORT TERM: gap down opening starts the week, DOW -27
Overnight the Asian markets lost 0.6%. European markets opened higher but lost 0.9%. US index futures were lower overnight as well, and the market gapped down at the open to SPX 1455. The SPX had closed at 1461 on friday. After an hour of choppy action the SPX drifted up to 1457 by 10:30, then pulled back to 1453 by noon. A rally attempt followed, but the market only managed to reach SPX 1458 in the last hour of trading. Then it pulled back to close at SPX 1456.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were -0.80%. Bonds gained 10 ticks, Crude slipped 20 cents, Gold slid $5, and the USD was higher. Medium term support for the SPX remains at the 1440 and 1386 pivots, with resistance at the 1499 and 1523 pivots. This is nothing on the economic/FED schedule tomorrow.
The market gapped down today for the first time since the end of September. That gap down marked an important low: SPX 1436. After hitting the SPX 1453 low around noon, the market tried to close the gap at SPX 1461, but came up short. We still see the above mentioned SPX 1436 low as the end of Minor wave 2, and a subdividing Minor wave 3 underway. This short term count remains in effect unless the October low, at SPX 1439, is exceeded to the downside.
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 today and then bounced. The short term OEW charts tested support today at SPX 1453 and held. A positive bias remains with the swing level now SPX 1454. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market