SHORT TERM: market drops third day in a row, DOW -86
Overnight the Asian markets were mostly higher, with only the ASX displaying a loss. Europe came in about -0.15%, and closed -0.35%. US index futures traded higher after the February core PCE was reported at only +0.1%, better than expected. At the open stocks rallied to 1335 by 10:00, but that was the high for the day. For the rest of the day the market gradually worked its way lower. After breaking through the 1327 pivot around 1:30, the selling continued until the 1316 pivot was hit in the last hour of trading. For the day the SPX/DOW were -0.75%, and the NDX/NAZ were -0.70%. Bonds gained about 1/2 point, Crude lost $2.50, Gold dropped $19.00, and the Euro was slightly higher. Support for the SPX now notches down to 1287 and then 1261, with resistance at 1316 and then 1327. Short term momentum was oversold at the close. The market pulled back to the 1316 EW pivot as expected, but the near term indicators are not quite oversold yet. Possibly some conolidation at this level on monday will do the trick. Best to your weekend!
MEDIUM TERM: rally continues to fade
LONG TERM: bear market