SHORT TERM: another gap down opening, DOW -59
Overnight the Asian markets lost 0.3%. European markets opened lower and lost 0.7%. US index futures were lower overnight, and at 8:15 the ADP index was reported lower: 166k v 176k. The market gapped down at the open to SPX 1687 and continued to decline. The market had closed at SPX 1695 yesterday. Around 10:00 the market found support at exactly the 1680 pivot and began to rally. Heading into the afternoon the SPX had rallied back to 1693 by 1:30, then began to pullback. By 3:00 the SPX had dropped a few points to 1689, and then another pop into the close ended the day at SPX 1694.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were mixed. Bonds gained 9 ticks, Crude rose $1.85, Gold rallied $24, and the USD was lower. Medium term support remains at the 1680 and 1628 pivots, with resistance at the 1699 and 1779 pivots. Tomorrow: we may get reports on weekly Jobless claims at 8:30, then Factory orders and ISM services at 10:00. Also there is a speech by FED governor Powell at 1:30.
Today we had the third gap down in the past four trading days. And the market ended today only 5 points lower than when this all started, last Friday. All three gaps down openings found a low for the day in the first half hour of trading, and then the market rallied for the rest of that day. Resilient, or end/beginning of quarter buying. Right after the open we labeled a tentative Minor B label at yesterday’s SPX 1697 high. But after a decline to SPX 1680 the market rallied back to 1694. So Minor B may not be over yet.
Short term support is at the 1680 pivot and SPX 1654-1665, with resistance at the 1699 pivot and SPX 1730. Short term momentum vacillated around neutral today. The short term OEW charts are vacillating as well with the reversal level still SPX 1692. Best to your trading!
MEDIUM TERM: uptrend remains choppy
LONG TERM: bull market