SHORT TERM: market opens flat, DOW -92
Overnight the Asian markets were mostly higher. Europe opened higher and closed +0.05%. US index futures were relatively flat overnight. At 9:00 Case-Shiller reported another uptick in month over month housing prices, yet the annual rate of change was -4.5% vs -4.0%. The market opened slightly lower at SPX 1336. The SPX had closed at 1337 yesterday. Within the opening minutes the SPX dropped to 1330. This exceeded yesterday’s low by one point, and increased the current pullback, from SPX 1347, to 17 points. After that the market tried to rally. At 10:00 Consumer confidence was reported higher: 59.5 vs 58.5, and New home sales lower: 312K vs 319K. Then with minor pullbacks of 2 and 3 points along the way, the market rallied to SPX 1339 by 2:30. After that the market dropped to SPX 1330 again before closing at 1332.
For the day the SPX/DOW were -0.55%, and the NDX/NAZ were mixed. Bonds gained 11 ticks, Crude added 25 cents, Gold rose $5.00, and the USD was lower. Support for the SPX remains at 1313 and then 1303, with resistance at 1363 and then 1372. Short term momentum hit oversold again this morning and then turned higher. Tomorrow, Durable goods orders at 8:30, then the FED’s Beige book at 2:00.
The market opened relatively flat today. Then it took out yesterday’s low at SPX 1331, by one point, before rallying to 1339 by 2:30. In the last hour of trading the market gave the entire bounce back. OEW short term charts swung negative early today, and the rally carried right into resistance. The short term bias is now down. Support is now at SPX 1327, then the 1313 and 1291 pivot ranges. Overhead resistance at SPX 1337, 1344, and then the 1363 pivot range. We took a look at our long term technical indicators today, and six of the eight are displaying negative divergences. Not a good sign longer term. Best to your trading!
MEDIUM TERM: uptrend high SPX 1356
LONG TERM: bull market at inflection point