SHORT TERM: another quiet trading session, DOW unchanged
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 0.4%. US index futures were relatively flat overnight. At 8:30 Building permits were reported higher: 1034K v 974K v 918K: housing remains positive. At 9am Case-Shiller was reported higher: +13.3% v +12.8%, and the FHFA was reported higher: +0.3% v +0.3%. The market opened higher at SPX 1804, edged up to 1805, then pulled back to 1801 by 10am. At 10am Consumer confidence was reported lower: 70.4 v 71.2. The market then started to work its way higher. Around 2pm the SPX hit 1808, went sideways for a while, and then dipped into a 1803 close.
For the day the SPX/DOW were flat, and the NDX/NAZ were +0.55%. Bonds gained 10 ticks, Crude slipped 20 cents, Gold slid $6, and the USD was lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow: weekly Jobless claims and Durable goods orders at 8:30, the Chicago PMI at 9:45, then Consumer sentiment and Leading indicators at 10am.
The market opened higher today, pulled back, then retested monday’s all time high at SPX 1808. The first two trading days of this holiday week suggests we have a market that does not appear interested in going much higher yet. We continue to observe negative divergences on all time frames, which suggests a downturn can also occur at any time. With tomorrow the last full day trading session of the month there may be some end of month buying, with volume likely light.
Short term support remains at the 1779 pivot and SPX 1746, with resistance at SPX 1804-1810, SPX 1818, and the 1828 pivot. Short term momentum created a negative divergence and then declined. The short term OEW charts remain positive with the reversal level now SPX 1800. Best to your trading and holiday travels!
MEDIUM TERM: uptrend
LONG TERM: bull market