SHORT TERM: pullback continues, DOW -9
Overnight the Asian markets lost 0.1%. Europe opened lower and lost 0.6%. US index futures were lower overnight, but the market opened flat at SPX 1792. In the opening minutes the SPX pulled back to 1786 and then rallied to 1796 by 10:30. Then after a pullback to SPX 1789, and bounce to 1794, the market pulled back to 1785 by 2pm. Another rally attempt followed as the SPX hit 1791 by 3:30, but the market pulled back into a 1788 close.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were -0.40%. Bonds lost 10 ticks, Crude added 25 cents, Gold ended flat, and the USD was lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow: Retail sales and the CPI at 8:30, Existing home sales and Business inventories at 10am, then the often volatile FOMC minutes at 2pm.
The market opened flat today, dipped below yesterday’s low, tried to rally, but then made a lower low at exactly SPX 1785 in the afternoon. In the morning we upgraded the green Minor 3 label to dark blue, then posted a tentative Minor 4 near today’s low. Short term the market is sufficiently oversold for a Minor 4 low. But last week the Minor 2 low was made at the open on Wednesday. Let’s see what happens with Minor 4 tomorrow.
Short term support is at the 1779 pivot and SPX 1746, with resistance at SPX 1810 and the 1828 pivot. Short term momentum hit quite oversold and then bounced. The short term OEW charts flip flopped today, ending neutral at SPX 1788. Best to your trading!
MEDIUM TERM: uptend
LONG TERM: bull market