SHORT TERM: stocks open mixed on overseas buying
Overnight the Asian markets all rebounded from opening lows to post modest gains. China’s SSEC posted an all time new high. Europe also opened lower, but traded 0.30% higher coming into the open. At the open stocks bounced, but then took out friday’s lows within the first few minutes. Since then, an oversold rally appears trying to get started. Bonds are up a few ticks, Crude off 55 cents, Gold 60 cents higher, and the Euro is higher. Thus far today, the SPX has been toggling the long term 1462 pivot point: range 1455 to 1467. If it can maintain support here. We could get a rally back to the short term 1484 pivot that created the double bottom in June, and supported the market for the past couple months. Short term momentum is displaying positive RSI divergences.
On the economic front, the FED is quiet this week, ahead of next week’s FOMC meeting. Tomorrow before the open, the June core PCE will be reported along with several other indicators. Wednesday is the July ISM and factory orders on thursday. Friday is the July payroll report and July ISM services. The PCE, ISM numbers, and the Payroll numbers are the major ones. So far the market continues to stabilize after last week’s debacle, but has done little so far on the upside. Best to your trading!
MEDIUM TERM: neutral
LONG TERM: bullish.