SHORT TERM: gap down opening, DOW -32
Overnight the Asian markets gained 0.2%. Europe opened lower and lost 0.3%. US index futures were lower overnight and the market gapped down at the open to SPX 1766. The SPX had closed at 1772 yesterday. After the opening the market rallied back to yesterday’s close, and then the pullback resumed. At 1:30 the SPX hit 1762, was quite oversold, and began to rally. The rally pushed the SPX to 1769, then a dip into the close ended the day at 1768.
For the day the SPX/DOW were -0.20%, and the NDX/NAZ were +0.05%. Bonds lost 6 ticks, Crude dropped $2.00, Gold slid $14 and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 and 1828 pivots. Tomorrow: Export/Import prices at 8:30, then the Budget deficit at 2:00.
The market gapped down at the open (to let everyone know the banks were open), then bounced back to close the gap before heading lower again. In the afternoon the SPX hit its low for the day at 1762, then recovered heading into the close. Two weeks ago today the market hit SPX 1775 at the open. Since then the market has failed on three attempts to break through that level, and the OEW 1779 pivot range. Consolidation, or forming a top? Since June the SPX has risen from 1560 to 1775 with nothing more than a 4.9% correction during that period.
Short term support remains at SPX 1746 and SPX 1730, with resistance at the 1779 pivot and SPX 1810. Short term momentum dropped from quite overbought to quite oversold, then ended the day around neutral. The short term OEW charts are flip-flopping again, ending the day positive with the reversal at SPX 1766. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market