SHORT TERM: gap up opening sold off, DOW -36
Overnight the Asian markets were mixed. Europe opened higher and closed +0.85%. US index futures were higher overnight, and at 8:30 the change in Personal income was reported at 0.0% v -1.1%, plus Consumer spending was reported +0.2% v +0.6%. The market rallied on the news and gapped up hitting 1039, a new uptrend high, at the opening. The OEW 1041 pivot held, however, and the market then started to selloff. At 10:00 Consumer confidence was reported at 65.7% v 63.2%, then the FED announced that they were reducing the monthly TAF auctions: http://www.federalreserve.gov/newsevents/press/monetary/20090828a.htm. The market continued to move lower. By 12:30 the SPX hit 1023 the low for the day, and then started to rally. At 3:30 the SPX hit 1030 and then faded into the close. For the day the SPX/DOW were -0.30%, and the NDX/NAZ were +0.10%. Bonds were up 9 ticks, Crude gained 30 cents, Gold rallied $10.00, and the Euro was lower. Support for the SPX remains at 1018 and then 990, with resistance at 1041 and then 1061. Short term momentum was slightly overbought this morning but dropped during the selling and ended around neutral on the day.
The upside momentum heading into the close yesterday helped the market make a new uptrend high today at SPX 1039. The OEW 1041 pivot held again and the market sold off 16 points, right within the typical pullback range (13-16 pts) of this uptrend. There are several potential formations forming under the pivot, including a diagonal. Will take a good look this weekend. Best to yours!
MEDIUM TERM: uptrend ekes out new high SPX 1039
LONG TERM: bear market