SHORT TERM: pullback continues, DOW -73
Overnight the Asian markets lost 0.3%. Europe opened lower but gained 0.1%. Last night the FED released this: http://www.federalreserve.gov/newsevents/press/monetary/20131031a.htm. US index futures were lower overnight, and at 8:30 weekly Jobless claims were reported lower: 340k v 350k. The market opened unchanged at SPX 1763, pulled back to 1761, bounced to 1766, and then pulled back further. At 9:45 the Chicago PMI was reported higher: 65.9 v 55.7. The pullback continued until 10:30 when the SPX took out yesterday’s 1757 low hitting 1756. Then the market started to rally. The rally continued until around 2:30 when the SPX hit 1769. After that the market headed south, and oddly enough closed at SPX 1757.
For the day the SPX/DOW were -0.40%, and the NDX/NAZ were -0.25%. Bonds lost 8 ticks, Crude slipped 50 cents, Gold dropped $18, and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: ISM manufacturing and Construction spending at 10AM, plus Auto sales.
The market opened flat today, tried to rally, then took out yesterday’s SPX 1757 low. As soon as it hit SPX 1756 it began to rally. The rally carried the market right back to the upper end of the post-FOMC trading range. Then the market headed back to the lows into the close. After a week or so absence, the BOTs are back. At the open they took out of overnight ES highs, then the overnight lows, then the early highs, and finally were shooting for the early lows near the close. Typical BOT action. With several reversals over the past few days, and the SPX 1757 low exceeded this AM, it certainly appears a pullback (profit taking) is underway. Year end selling?
Short term support drops to SPX 1756 and SPX 1730, with resistance at the 1779 pivot and SPX 1804. Short term momentum rose from quite oversold to neutral today, then ended oversold. The short term OEW charts flip-flopped during the day but ended negative, with the reversal level now SPX 1761. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market