SHORT TERM: rally fizzles to end the month, DOW -171
Overnight the Asian markets were all higher, and Europe opened higher then closed +0.45%. At 8:30 the core PCE was reported up 0.3%, while consumer spending and incomes declined. Stocks gapped down lower at the opening when the SPX opened around 1292. Yesterday’s close was SPX 1301. A small bounce followed to 1297 by 10:00, but the market headed lower again hitting 1285 by noon. Another rally followed to 1291 by 1:30, but that failed as well. At the close the SPX/DOW were -1.40%, and the NDX/NAZ were -2.00%. Bonds were down four ticks, Crude was flat, Gold dropped $2.00, and the Euro was lower. Support for the SPX drops to 1261 and then 1240, with resistance at 1287 and then 1316. Short term momentum, which was extremely overbought yesterday, dropped below neutral today. The near term indicators pulled back to neutral as well. Monday is Labor day is the US. Maybe when everyone gets back to work this market will actually do something. Best to your weekend!
MEDIUM TERM: SPX 1313 still the uptrend high
LONG TERM: bear market