SHORT TERM: market remains in tight trading range, DOW +3
Overnight most of the Asian markets were lower. Europe opened lower and closed -0.80%. US index futures were lower overnight, and the market opened around SPX 1122. At 9:45 the Chicago PMI was reported: 60.0 v 56.0. The market then rallied to yesterday’s close at SPX 1126 by 10:00. Another pullback followed to retest the low for the day at SPX 1122. Then the market drifted higher into the close. Another 4 SPX point trading range on the day. For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.25%. Bonds gained 4 ticks, Crude added 45 cents, Gold lost $6.00, and the USD was higher. Support for the SPX remains at 1107 and then 1090, with resistance at 1133 and then 1168. Short term momentum was slightly oversold at the opening and then edged higher during the day. Tomorrow, the weekly Jobless claims will be reported at 8:30 to end the economic week.
Posted the temporary wave 3 label after the SPX dipped below monday’s low of 1124. Thus far the pullback from 1130 is acting like a fourth wave: the hourly chart reached oversold, and the pullback has been the largest since the wave 3 rally began at SPX 1094. Expecting a little more downside short term, but not too much as the top of wave 1 was SPX 1116. Best to you and yours in 2010!
MEDIUM TERM: uptrend
LONG TERM: bear market rally