SHORT TERM: consolidation day, DOW -26
Overnight the Asian markets lost 0.4%. Europe opened higher but finished -0.1%. US index futures were relatively flat overnight. At 8:30 weekly Jobless claims were reported lower: 292k vs 323k, and Export (-0.1% vs -0.2%)/Import prices (-0.2% vs -0.4%) were reported lower. The market opened unchanged at SPX 1689, dipped to 1686, and then made a new rally high at 1690 by 10:00. Then the market started to pullback. At 12:30 the SPX hit 1682, rallied to 1687 by 1:30, hit 1682 again near the close, and ended the day at 1683.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were -0.20%. Bonds gained 2 ticks, Crude rose $1.10, Gold dropped $39, and the USD was lower. Medium term support remains at the 1680 and 1628 pivots, with resistance at the 1699 and 1762 pivots. Tomorrow: Retail sales and the PPI at 8:30, then Consumer sentiment and Business inventories at 10:00.
Today the market opened flat, rallied to SPX 1690, then had its biggest pullback of the week: 8 points. After that the market tried to rally, retested that low, and ended the day just above it. The short term negative divergence that been building this week took hold. But thus far, not much of a pullback. Not much has changed from yesterday’s post. The counts posted on the SPX and DOW charts are both still in play.
Short term support remains at the 1680 pivot and SPX 1658-1667, with resistance at the 1699 pivot and SPX 1710. Short term momentum displays a negative divergence. The short term OEW charts remain positive with the reversal level now SPX 1671. Best to your trading!
MEDIUM TERM: downtrend inflection point
LONG TERM: bull market