SHORT TERM: higher open then pullback, DOW -7
Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.1%. US index futures were higher overnight, and the market opened at SPX 1746, one point above Friday’s close. Just past 10AM the SPX hit 1748 and then began to pullback. Also at 10AM Existing home sales were reported lower: 5.29mn v 5.48mn. The market pulled back to SPX 1742 by 11AM, then tried to rally. After a bounce to SPX 1745 by 1PM, the market pulled back to 1741 by 2:30. Then bounced again to close at SPX 1745
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.20%. Bonds lost 5 ticks, Crude dropped $1.45, Gold added $2, and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: the monthly Payrolls report at 8:30, then Construction spending at 10AM.
The market opened higher today, made a slightly higher bull market high, then started to pullback. Overall it was a fairly quiet day as the market traded within a seven point range. Today’s high was accompanied with a negative divergence on the hourly charts. So a pullback, of some degree, was quite normal. Since the SPX 1696 low last Tuesday, all pullbacks, surprisingly, have been quite small.
Short term support remains at SPX 1730 and the 1699 pivot, with resistance at the 1779 pivot. Short term momentum dipped to neutral after a negative divergence. The short term OEW charts remain positive with the reversal level SPX 1729. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market