SHORT TERM: market continues its consolidation, DOW +15
Overnight the Asian markets were mostly higher. Europe opened higher and closed +0.30%. US index futures were higher overnight, but pulled back heading into the open. At the open the SPX traded at 977, and then edged up to new uptrend highs at 982 by 10:00. At this time New homes sales were reported at 384K v 346K. The market immediately pulled back on the news hitting 972 by 11:00. That was the low for the day. The market then worked its way higher: SPX 979 at 11:30, 974 at 12:30 and 982 by the close. For the day the SPX/DOW were +0.25%, and the NDX/NAZ were +0.05%. Bonds lost 12 ticks, Crude gained 20 cents, Gold added $1.00, and the Euro was higher. Support for the SPX remains at 961 and then 935, with resistance at 990 and then 1018. Short term momentum continues to move sideways between neutral and overbought. Tomorrow, Case-Shiller housing price index at 9:00, and then Consumer confidence at 10:00.
Today’s early morning rally to SPX 982 approached the 990 OEW pivot and was immediately turned away. Another attempt was made late in the day. This market continues to work its way higher on weaker and weaker upside momentum. Should the SPX drop below today’s lows, the likelihood of a substantial pullback will increase. We continue to count this rally as noted in the weekend report. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market