friday update

SHORT TERM: gap down opening, DOW -70

Overnight the Asian markets lost 0.2%. European markets opened lower and lost 0.3%. US index futures were lower overnight. At 8:30 Personal income (+0.4% v +0.1%)/spending (+0.3% v +0.1%) were reported higher. Also PCE prices came in higher: +0.2% v +0.1%. The market gapped down at the open to SPX 1689 and continued lower. The market had closed at SPX 1699 yesterday. Just before 10:00 Consumer sentiment was reported higher: 77.5 v 76.8. Then the market hit SPX 1687 and tried to rally. Around 1:30 the SPX hit 1693 and started to pullback. Around 3:30 the pullback bottomed at 1689. Then the market bounced into a SPX 1692 close.

For the day the SPX/DOW were -0.45%, and the NDX/NAZ were -0.15%. Bonds gained 7 ticks, Crude slipped 40 cents, Gold rallied $12, 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 Medium Home Sale prices declined: $254.6k v $256.3k, and the M1 multiplier declined: 0.721 v 0.742. Today the WLEI was reported higher: 54.9% v 54.1%.

The market gapped down today for the first time in a month. There were five gap up openings in between. The gap opening jumped over, as has been the case during this bull market, the OEW 1699 pivot range. But found support in the 1680 pivot range at SPX 1687 to end the slide and the market rebounded somewhat. After a rally to SPX 1693 the market went into a trading range for the rest of the day. An interesting week as the market entered another chop-chop mode with a weakening trend. Just like it did prior to the last correct. And the DOW is leading lower again too.

Short term support is at the 1680 pivot and SPX 1654-1665, with resistance at the 1699 pivot and SPX 1730. Short term momentum has maintained a positive divergence since early Monday. Yet the market has only drifted lower. Best to your weekend!

MEDIUM TERM: uptrend weakening

LONG TERM: bull market

CHARTS: http://stockcharts.com/public/1269446/tenpp