SHORT TERM: gap down opening, DOW -107
Overnight the Asian markets lost 0.5%. European markets opened lower and lost 1.8%. US index futures were much lower overnight, and the market gapped down at the open to SPX 1651. The SPX had closed at 1660 yesterday. In the opening minutes the SPX hit 1646, bounced to 1653 by 10:00, then dropped to 1640 by 11:00. After getting quite oversold it then tried to rally. By noon the SPX had hit 1648, then pulled back to 1642 by 1:00, and rallied to 1654 by 2:00. After that it pulled back into a SPX 1648 close.
For the day the SPX/DOW were -0.70%, and the NDX/NAZ were -0.60%. Bonds gained 5 ticks, Crude dropped $1.80, Gold rose $13, and the USD was lower. Medium term support remains at the 1628 and 1614 pivots, with resistance at the 1680 and 1699 pivots. Tomorrow: Q1 GDP (est.+2.7%) at 8:30, along with weekly Jobless claims. Then at 10:00 Pending home sales.
The market gapped down at the open today, for the fourth gap opening in a row. The last time the market experienced this kind of volatility was in late March. Then it had six gap openings in a row, while it was forming the fifth wave, (diagonal triangle), of Minute iii of Minor 3. Are we experiencing the early stages of a diagonal Minute v of Minor 5? Then, the key area to watch was 1536/39. Now, the key area to watch is 1636/37. Odd right?
Short term support is at the 1628 and 1614 pivots, with resistance at the SPX 1658-1667 range and the 1680 pivot. Short term momentum hit quite oversold this morning, then rebounded to neutral. The short term OEW charts flipped negative again at the open with the reversal level now SPX 1654. Best to your trading!
MEDIUM TERM: uptrend struggling
LONG TERM: bull market