SHORT TERM: correction/pullback continues, DOW +2
Overnight the Asian markets gained 0.5%. European markets opened lower and lost 0.5%. US index futures were lower overnight as well. The market opened one point below friday’s SPX 1433 close. In the first half hour it dipped to SPX 1429, bounced to 1435, and then headed lower. Around 11:30 the SPX touched 1427, bounced to 1432 by noon, and then head lower again. Then around 1:30 the SPX hit the lower limit of support at 1422, and rallied into a 1434 close.
For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.50%. Bonds lost 13 ticks, Crude slid $1.35, Gold added $5, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. The FED starts its two day FOMC meeting tomorrow.
The market opened relatively flat today, pulled back in a stair-step decline to the lower end of the SPX 1422/27 support zone, then rallied into the close. This afternoons rally, SPX 1422-1434, is the best rally since the recent 42 point decline began from SPX 1464. At the lows, the hourly RSI hit one of its lowest levels of the entire year. It was reset to neutral this afternoon when the market rallied. At the close the market ended the day relatively unchanged.
Short term support remains at SPX 1422/27 and 1413/16, with resistance at the 1440 pivot and SPX 1463/64. Short term momentum ended the day slightly above neutral. The short term OEW remain negatively biased with the swing level now at SPX 1443. Best to your trading!
MEDIUM TERM: uptrend in jeopardy
LONG TERM: bull market