SHORT TERM: market pullback/correction continues, DOW -205
Overnight the Asian markets lost 0.1%. Europe opened lower and lost 0.8%. US index futures were lower overnight. The market opened at SPX 1454, three points below yesterday’s close, then continued to decline. At 10:00 Existing home sales were reported lower: 4.75 mln vs 4.82 mln. The decline continued throughout the afternoon until just before 3:00, when the SPX hit 1430. A small rally to SPX 1436 followed. Then the market dipped to end the week at SPX 1433.
For the day the SPX/DOW were -1.60%, and the NDX/NAZ were -2.30%. Bonds gained 12 ticks, Crude lost $2.15, Gold dropped $19, and the USD was higher. Medium term support drops to the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Last night the FED reported an increase in the Monetary base: $2.65 tln vs $2.59 tln, and an increase in the M1 multiplier: 0.911 vs 0.900. Today the WLEI was reported higher yet again: 56.1% vs 55.7%.
The market opened lower today and continued the decline that started around noon yesterday. After hitting resistance at SPX 1463/64 yesterday the market steadily declined until hitting 1430 today. Nearly the entire 2+% gain on the week was wiped out in a bit more than 24 hours. This type of market activity certainly looks like a C wave in the NDX/NAZ. And now, the SPX/DOW as well. More on this in the weekend update.
Short term support drops back to SPX 1422/27 and then 1413/16, with resistance at the 1440 pivot and SPX 1463/64. Shirt term momentum hit extremely oversold at the low. The short term OEW charts turned negative right after the open with the swing level now around SPX 1447. Best to your weekend!
MEDIUM TERM: uptrend in jeopardy
LONG TERM: bull market