SHORT TERM: another choppy day, DOW -42
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 0.7%. US index futures were higher overnight, and at 8:30 weekly Jobless claims were reported lower: 366K vs 368K. The market opened one point below yesterday’s SPX 1512 close. In the first first few minutes it bounced to yesterday’s 1513 high, then started to pullback. Also at 9:30 FED governor Stein’s speech was released: http://www.federalreserve.gov/newsevents/speech/stein20130207a.htm. The pullback continued, seemingly following the decline in the Euro, until 11:00 when the SPX hit 1498. Then after a momentary bounce to SPX 1503 the market made its low for the day at 1498 around noon. After that it started to rally. At 3:00 Consumer credit was reported lower: $14.6 bln vs $16.0 bln. The rally continued into a SPX 1509 close.
For the day the SPX/DOW were -0.25%, and the NDX/NAX were mixed. Bonds gained 2 ticks, Crude lost 80 cents, Gold slipped $6, and the USD was higher. Medium term support remains at the 1499 and 1440 pivots, with resistance at the 1523 and 1552 pivots. Tomorrow: the Trade deficit at 8:30, then Wholesale inventories at 10:00.
The market opened slightly lower today, bounced a bit, then took out yesterday’s low on its way to SPX 1498. Then to keep everyone guessing it rallied again. If we look back just seven trading days ago, when the uptrend initially hit SPX 1510, we observe quite a choppy pattern. A drop to SPX 1497, rise to 1514, drop to 1495, rise to 1515, and drop to today’s 1498. Slightly higher highs, then finding support between 1495-1498. Buyers under 1500 keeping this pullback afloat? Despite this choppy activity we continue to keep the count as posted on the SPX: Minor 3 @ 1514, Minute A @ 1495, Minute B @ 1515, and Minute C underway.
Short term support remains at the 1499 pivot and SPX 1471/75, with resistance at the 1523 and 1552 pivots. Short term momentum hit oversold today, then bounced back above neutral. The short term OEW charts dropped to negative, then positive, as the market vacillated below and above SPX 1504. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market