SHORT TERM: wild day in light trading
Stocks opened mixed this morning, then rallied for 15 minutes running into resistance at the SPX 1431 overhead EW pivot. As the market began to pullback reports came out of Washington that trade sanctions were going to be put into place against China’s paper products. The market sold off on the news, and was sharply lower heading into the noon hour. The SPX/DOW took out yesterdays lows during the selling, as the SPX hit 1409, just above the 1404 EW pivot. The NDX held yesterdays lows, and that eventually helped to stabilze the market. For the rest of the day the market tried to retrace most of its loses, as it rallied back. Bonds traded about 1/4 point lower, Crude was down 30 cents, Gold rallied about $2.00, and the Euro spiked higher on the sanctions news. This market has had a tough time trying to get going this week. All the news, good or bad, has been met with selling pressure. Then the spike low this morning, was so quickly reversed that it failed to even show up on the 15min chart. It’s been a day traders market. If the market can rally past the recent highs of SPX 1439, then it should confirn a new uptrend. Until then, this choppiness could continue, and a retest of the lows can not be ruled out. The EW pivots containing this market remain 1404, 1417, and 1431. The current parameters are: a break below SPX 1404, and a retest of the lows is likely; a breakout above 1439 and the uptrend should be underway. Waiting for the market to decide. At the close the SPX/DOW were mixed, and the NDX/NAZ were up 0.10%. Best to your weekend, it’s looks like Spring has arrived.
MEDIUM TERM: neutral to bullish
LONG TERM: bullish.