SHORT TERM: gap down opening then rebound, DOW -54
Overnight the Asian markets lost 1.3%. Europe opened lower and lost 0.5%. US index futures were lower overnight. At 8:30 Export (+0.3% v -0.1%)/Import (+0.1% v -0.2%)prices were reported higher. Then at 9AM the FHFA index was reported higher: +0.3% v +1.0%. Nevertheless, the market gapped down at the open to SPX 1749 and declined to 1742 by 10AM. Then after a bounce to SPX 1747 the market hit 1741 by 11AM. After that the market started to work its way higher. At 2:30 the SPX hit 1748, then dipped to close at 1746.
For the day the SPX/DOW were -0.40%, and the NDX/NAZ were -0.60%. Bonds gained 3 ticks, Crude lost $1.30, Gold slid $6, and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: weekly Jobless claims and the Trade deficit at 8:30, then New home sales at 10AM.
The market gapped down at the open today, then eventually hit SPX 1741 before rebounding in the afternoon. SPX 1741 is actually the low for the week thus far, as it was also touched around 2:30 on Monday. Right after the open we labeled yesterday’s SPX 1759 high as Minor 3. During today’s decline the market did get oversold, just like the previous pullback during Minor 2. Should the market now rally over SPX 1750, it would suggest Minor wave 5 is underway.
Short term support is at SPX 1730 and the 1699 pivot, with resistance at SPX 1759 and the 1779 pivot. Short term momentum hit oversold and then rose to neutral. The short term OEW charts remain positive with the reversal level now SPX 1740. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market