SHORT TERM: overnight selling drove the market down early, and it hardly recovered, DOW -211
Overnight the Asian markets were all lower, despite the positive close in the US yesterday. Europe was substantially lower, coming into the open down 2.5%. As a result stocks sold off rapidly, with a gap down, and by 11:00 hit SPX 1416. A new low for the correction. A choppy advance followed to 1435 by 3:00, but the market couldn’t make any more progress and headed to lows near the close. At the close the SPX/DOW were -1.60%, and the NDX/NAZ were -1.25%. Bonds were up over 1/4 point, Crude lost about 95 cents, Gold rallied nearly $12.00, and the Euro was higher. The selling this morning took the SPX down near the next lower pivot at 1410. This held today, so support remains at 1410 and then 1383, with resistance at 1438 and 1462. Short term momentum has been going sideways lately while the market has declined. This is usually not a good sign, as this kind of erosion without an extreme, can lead to continuing lower prices. It looks like the market will be revisiting the August lows, the 1364 pivot, before all is said and done. Tomorrow the US is closed for a holiday, and trading will resume for a shortened session on friday. Some matters came up this morning, missed the post. Enjoy the holiday!
MEDIUM TERM: correction continues
LONG TERM: it’s still a bull market.