SHORT TERM: choppy downward bias continues, DOW +70
Overnight the Asian markets lost 0.3%. Europe opened higher but lost 0.3% as well. US index futures were higher overnight. The market opened four points above yesterday’s SPX 1757 close and continued to rally. At 10AM ISM manufacturing was reported higher: 56.4 v 56.2. Just past 10AM the SPX hit 1766 and began to pullback. Around 12:30 the market made a new low for this pullback at SPX 1753. With a short term positive divergence in place the market then tried to rally. Heading into the close the SPX hit 1764, then dipped to end the week at 1762.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.05%. Bonds lost 20 ticks, Crude dropped $1.70, Gold slid $8, and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Last night the FED reported a rise in the Monetary base: $3.628tn v $3.625 tn. Today the WLEI was reported lower again: 51.7% v 52.0%.
The market opened higher today, rallied back to SPX 1766, and then sold off to a new low for the pullback at 1753. With the SPX had closing at 1757 yesterday we again had a few intraday price swings. At the low the market setup a positive divergence. The first one in quite some time. And, naturally a rally followed. The rally hit SPX 1764 near the close for another intraday price swing. Another choppy day just like yesterday.
Short term support is now at SPX 1753 and SPX 1730, with resistance at the 1779 pivot and SPX 1804. Short term momentum is displaying a positive divergence. The short term OEW charts flipped flopped again today, ending positive, with the reversal level now SPX 1760. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market