SHORT TERM: Chrysler declares bankruptcy, DOW -18
Overnight the Asian markets were all higher. Europe opened higher and closed +1.35%. US index futures rallied overnight and remained higher when the economic reports were released at 8:30. Weekly Jobless claims came in at 631K v 645K, Personal income dropped -0.3%, Consumer spending was flat and the Core PCE remained at +0.2%. The market gapped up at the open to SPX 879, then the Chicago PMI was reported at 40.1% v 31.4%. The rally continued until the SPX made a new uptrend high at 889 at 11:30. Then the market started to pullback. By 1:30 the SPX dipped into negative territory at 870, rallied to 877 by 2:30 and then turned over again heading into the close. For the day the SPX/DOW were -0.15%, and the NDX/NAZ were +0.60%. Bonds were down 3 ticks, Crude was flat, Gold dropped $10.00, and the Euro was lower. Support for the SPX remains at 848 and then 789, with resistance at 912 and then 935. Short term momentum put in a negative divergence at this mornings highs and is now heading lower. Tomorrow, Consumer sentiment, Factory orders and ISM all at 10:00. Then Auto sales later in the day.
Overnight the SPX futures ran right into the upper trendline of the expanding triangle noted yesterday. The futures then pulled back for the rest of the session. In the cash market the SPX made a new uptrend high at 889 in the morning and pulled back to 869 before bouncing into the close. The market is now leaning to the downside on the very short term charts, but will need a break to around 860 to continue this momentum. This certainly has been a resilient uptrend with the largest pullback thus far only 53 points, while rising 222 (33%) points. Tomorrow starts a new month. Best to your trading!
MEDIUM TERM: uptrend makes new high at SPX 889
LONG TERM: bear market