SHORT TERM: new uptrends highs in quiet trading, DOW -3
Overnight the Asian markets open lost 0.7%. European markets fared better gaining 0.2%. US index futures were slightly lower overnight. At 9:00 Case-Shiller reported a 1.2% decline in housing prices for the recent month. The market opened lower at SPX 1263, dipped to 1262, and then started to rally. The SPX had closed at 1265 on friday. Around 10:00 the SPX hit 1269, a new uptrend high, and then started to pullback. Also at 10:00 Consumer confidence was reported higher: 64.5 vs 56.0. At 11:00 the SPX had retraced only four points to 1265, and then started to drift higher. At 2:00 the SPX hit 1269 again, and again started to pullback. Heading into the close the SPX hit 1265 and closed there.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.25%. Bonds gained 5 ticks, Crude rallied $1.70, Gold dropped $13.00, and the USD was lower. Support for the SPX remains at 1261 and then 1240, with resistance at 1291 and then 1303. Short term momentum declined after being extremely overbought to neutral. Tomorrow, the economic calendar is clear.
The market rallied in the first half hour of trading to a new uptrend high at SPX 1269. After a pullback to SPX 1265 by 11:00 the day was essentially over as the market stayed within that four point range for the rest of the day. Short term OEW charts remain positive with support now around the upper end of the OEW 1240 pivot range. Short term support remains at the 1261 pivot range, SPX 1250, and the 1240 pivot range. Short term resistance is at SPX 1278, then the 1291 and 1303 pivot ranges. Technical indicators suggest the market may now be in a minor 10+ point pullback from today’s high. Best to your trading!
MEDIUM TERM: DOW confirmed uptrend, others majors likely to follow
LONG TERM: inflection point