SHORT TERM: gap down opening then rebound, DOW -21
Overnight Asian markets lost 0.6%. Europe opened lower and lost 0.5%. US index futures were lower overnight and the market gapped down to SPX 1761 at the open. The market had closed at SPX 1768 yesterday. At 10AM the SPX hit 1756, ISM services were reported higher: 54.4 v 53.4, and the market started to rally. Around 12:30 and then again just past 3PM the SPX hit 1767. Then the market pulled back to close at SPX 1763.
For the day the SPX/DOW were -0.20%, and the NDX/NAZ were +0.10%. Bonds lost 14 ticks, Crude dropped $1.20, Gold slipped $3, and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: Leading indicators at 10AM.
The market gapped down at the open today, hit SPX 1756, and then rallied back to nearly close the gap at 1768. After a quiet one way move yesterday, the BOTs were back in action with two moves today. Since last Wednesday’s SPX 1775 high the market has made ten price swings between 1753-1757 on the low end and 1766-1769 on the high end. This choppy sideways Int. wave iv pullback continues. With the ECB meeting on Thursday, Q3 GDP reporting on Thursday, and the Payrolls report on Friday, this sideways activity is likely to end quite soon.
Short term support is at SPX 1753 and SPX 1730, with resistance at SPX 1769 and the 1779 pivot. Short term momentum managed to get above neutral today, after almost hitting oversold this morning. The short term OEW charts flip-flopped again today, ending neutral and right at the reversal level of SPX 1763. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market