SHORT TERM: gap down opening then rally, DOW +64
Overnight the Asian markets open, gained 0.4%. Europe opened lower but gained 0.1%. US index futures were lower overnight, and the market gapped down at the open to SPX 1693. The SPX had closed at 1703 on Friday. In the opening minutes the SPX dipped to 1692, bounced around in a narrow range until 11AM, and then started to rally. Just after 3PM the market made a new rally high at SPX 1711, then backed off to close at 1710.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.65%. Bonds lost 12 ticks, Crude added 20 cents, Gold rose $3, and the USD was lower. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: the NY FED at 8:30.
The market gapped down today, and again the low was put in before 10AM, then the market rallied. This seems to be common theme of late. Government partially closed for the past two weeks, Debt limit just ahead on Thursday, and still the market has no fear. This market is not acting like it has during previous trouble spots in this bull market. In the mean time, until something dramatic to the upside occurs, we maintain the same probable count.
Short term support is at the 1699 and 1680 pivots, with resistance at SPX 1730 and the 1779 pivot. Short term momentum appears to be putting in a negative divergence ending the day overbought. The short term OEW charts are still positive with the reversal level SPX 1690. Best to your trading!
MEDIUM TERM: DOW downtrend, SPX/NDX/NAZ uptrend
LONG TERM: bull market