SHORT TERM: consolidation continues, DOW -22
Overnight the Asian markets lost 0.3%. European markets opened lower and lost 0.5%. US index futures were relatively flat overnight, and at 9:00 Case-Shiller was reported higher: +0.5% vs -0.7%. The market opened slightly lower at SPX 1408, bounced to 1411, and then pulled back to 1406 by 10:00. The market had closed at SPX 1410 yesterday. At 10:00 Consumer confidence was reported lower: 60.6 vs 65.9. The market then rallied to SPX 1414 by 10:30, but pulled back again to 1409 by 11:30. For the rest of the day the market stayed within the SPX 1409-1414 range, closing at 1409.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were +0.10%. Bonds gained 3 ticks, Crude rose 70 cents, Gold added $3, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Tomorrow: Q2 GDP (est. +1.6%) at 8:30, Pending homes sales at 10:00, then the FED’s beige book at 2:00.
The market opened lower today, touched SPX 1406, rallied to 1414, and then traded within that eight point range for the rest of the day. Short term momentum hit oversold at the low, but could not generate much of a bounce past neutral during that day. This market appears to be waiting for something. Tomorrow’s GDP number and FED beige book could be it.
Short term support remains at SPX 1402/03 and the 1386 pivot, with resistance at 1413/15 and 1422/27. Short term momentum hit oversold today then bounced. The short term OEW charts turned negative again today as the market continues to vacillate around the SPX 1410 swing point. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market