SHORT TERM: market opens lower and continues lower, DOW -192
Overnight the Asian markets were mixed with China’s SSEC displaying the best gains. Europe came in about 0.50% higher. US stocks opened lower following the weaker than expected November durable goods report, and the dreadful news out of Pakistan today. At the opening stocks gapped down and the SPX continued lower until it hit 1480 at 1:00. Finding that support pivot it tried to rally, but by 2:30 it could only manage to rise to 1485. With the 1484 level now acting as resistance, the market headed lower into the close. At the close the SPX/DOW were -1.40%, and the NDX/NAZ were -1.60%. Bonds rallied a full point, Crude was up 75 cents, Gold was off 50 cents, and the Euro was higher. Support for the SPX has notched down to 1462 and then 1438, with resistance at 1484 and then 1506. The pullback we were expecting is underway after that negative RSI divergence appeared nearing the close yesterday. Short term momentum is now oversold. There was weakness across the board today, but the tech leaders held up fairly well, even though the tech sector did not. One and a half trading days left in 2007. Happy New Year!
MEDIUM TERM: correcton ended at 1406, most indices now uptrending
LONG TERM: bullish, it’s still a bull market