SHORT TERM: market recovers after gap down, DOW -18
Overnight the Asian markets open were mixed. The European markets that were open were lower and closed -1.20%. US index futures were lower overnight, and the market gapped down at the open to SPX 1251. The SPX has closed at 1257 last week. After a few minutes of trading, and an oversold short term condition, the market tried to rally. For the rest of the day the market worked its way higher. In late afternoon the SPX hit 1258 and closed there.
For the day the SPX/DOW were mixed, and the NDX/NAZ were mixed. Bonds gained 13 ticks, Crude slipped 70 cents, Gold added $3.00, and the USD was lower. Support for the SPX remains at 1240 and then 1222, with resistance at 1261 and then 1291. Short term momentum was oversold early and rising. Tomorrow Case-Shiller is reported at 9:00 and then Consumer confidence at 10:00.
After an opening gap down the market pulled back to SPX 1251. Then the market drifted higher for the rest of the day. The pullback, thus far, is only 8 points (SPX 1259-1251). The OEW short term charts remain in a positive mode while this market continues to drift in holiday trading. The parameters noted in the weekend short term section remain the same. Best to your trading and holidays!
MEDIUM TERM: uptrend high SPX 1259
LONG TERM: bull market