SHORT TERM: gap down open, DOW -161
Overnight the Asian markets were lower losing 1.0%. Europe opened lower and closed down 1.9%. US index futures started heading lower late yesterday after the ECB declined to participate in the bailout of Spain’s Bankia. Heading into the open index futures were down substantially and the market gapped down to SPX 1322. The market had closed at SPX 1332 yesterday. After the market opened it continued to head lower. At 10:00 Pending home sales were reported lower: -5.5% vs +4.1%. At 11:00 the SPX hit 1313 and tried to rally. By 11:30 the rally ended at SPX 1318 and the market declined to 1311 by 12:30. At 12:00: http://www.federalreserve.gov/newsevents/press/bcreg/20120530a.htm, and at 1:00 http://www.federalreserve.gov/newsevents/press/other/20120530a.htm, the FED released these statements. After another rally attempt the SPX hit 1318 again and then headed lower. In the final hour the SPX hit 1311 again as well, bounced to 1316, and then closed at 1313.
For the day the SPX/DOW were -1.35%, and the NDX/NAZ were -1.00%. Bonds gained 27 ticks, Crude dropped $3.15, Gold rallied $9, and the USD was higher. Support for the SPX remains at the 1313 and 1303 pivots, with resistance at the 1363 and 1372 pivots. Short term momentum swung from slightly overbought yesterday to slightly oversold today. Tomorrow, Q1 GDP at 8:30 (estimates +1.9%), along with weekly Jobless claims. Then at 9:45 the Chicago PMI.
Yesterday we noted the recent rally from SPX 1297 looked a bit choppy. But it would be okay if the rally continued past 1335 quickly, or if any pullback held above the 1313 pivot range. Neither of those occurred as the market gapped down at the open, and quickly entered the OEW 1313 pivot range. The advance from the recent lows now looks corrective, which suggests a retest is possible shortly. With the GDP report tomorrow and Payrolls on friday, this could happen quite quickly. The recent action in many of the markets has not been that constructive. Recently the only positive markets have been US Bonds and the USD.
Short term support is at the 1313, 1303 pivots and then SPX 1292, with resistance at SPX 1324/28 and 1342/47. Short term momentum bounced off slightly oversold. The short term OEW charts turned negative again on the drop below SPX 1321, which is the swing point now. Best to your trading!
MEDIUM TERM: downtrend trying to bottom
LONG TERM: bull market
PREDICTION: Today Tony’s site breaks 150 comments. May make a record high. That’s it!
LikeLike
Severe conditions are hanging over Washington D.C. this afternoon. On a side note, there’s a chance of heavy thunderstorms and tornadoes possible also.
LikeLike
Told ya they’re evil
I’m not holdin out on yas !
I just dont have a clue past each bracket 🙂
LikeLike
Don’t forget to tip ur server! MAY WAS EPIC! See ya’s next month
LikeLike
PP @ 1317 also globex high ESM
Thanks H D I needed that
I picked the wrong week to stop sniffing glue
were right at .50 % the week here 1316
LikeLike
ya’ll can be so cryptic. what are you saying for us lay people? you think the rally is upon us or this is just EOM short covering and not to be trusted?
LikeLike
I hear you rc – but it’s all good because by the time the mention something – it already happened 🙂 – they are like marcupials – their fast
Okay now I need some cow bell 🙂
LikeLike
hahaha SO TRUE. i feel like a geriatric trying to keep up with these wizards and their S1, S2, PP, +div, 38% fib. uggh.
LikeLike
Hey R C and PBNJ
Awwww cmon man
They’re basic pivots or “floor” pivots
All the cool algos trade them and when the circus is in town they certainly have value. IMO
But listen I see guys on blogs who post as much nonsense as me and I think theyre FOS also haha !
LikeLike
Lee: But listen I see guys on blogs who post as much nonsense as me and I think theyre FOS also haha !
🙂 is it about time to drop a “it works until it doesn’t” line? hah cheers
LikeLike
Well Lee, 15 down, 21 up and then 10 down … wild dayOnly in America, Land of Opportunity
LikeLike
That was a lot of selling at the close too – whew what a day – someone could have made a lot of money today hey Tony 😉
LikeLike
Lee and HD for sure.I was busy fending a cat off my cat with my dog 😉
LikeLike
USA !
LikeLike
“I was busy fending a cat off my cat with my dog”
Its obvious that OEW is just 1 of your many skills !
That’s livin !
LikeLike
just another multi-tasking day
LikeLike