SHORT TERM: market opens lower then bounces back, DOW -5
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.2%. US index futures were lower overnight and the market opened three points below Thursday’s SPX 1689 close. In the opening minutes the market dipped to SPX 1684, then started to drift higher. With only a three point pullback after the open the market ended the week at SPX 1692.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.85%. Bonds gained 12 ticks, Crude rose 35 cents, Gold rallied $11, and the USD was lower. Medium term support remains at the 1680 and 1628 pivots, with resistance at the 1699 and 1779 pivots. Last night the FED reported a decline in the M1 multiplier: 0.770 vs 0.784. Today the WLEI was reported lower: 54.5% vs 54.6%.
The market opened lower today, pulled back to SPX 1684, then drifted back up for the rest of the day. During the pullback we posted a green tentative Int. v/Major 3 label at SPX 1693. Then added a comment on the blog. If the SPX exceeds 1693 Minor 3 continues, if not, the uptrend is likely over. More on this in the weekend update.
Short term support is at the 1680 pivot then SPX 1658-1667, with resistance at the 1699 and 1779 pivots. Short term momentum dropped below neutral during today’s pullback then ended overbought. The short term OEW charts remain positive with the reversal level now SPX 1675. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market