SHORT TERM: pullback continues, DOW -78
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.3%. US index futures were higher overnight, and the market opened two points above Friday’s SPX 1806 close. The market then pulled back to SPX 1803 by 10am. At 10am ISM manufacturing was reported higher: 57.3 v 56.4, but Construction spending was lower: -0.3% v +0.6%. The market then began to rally, and by 1pm it hit SPX 1810. Then the market pulled back again. Heading into the close the SPX hit 1799 then bounced to close at 1801.
For the day the SPX/DOW were -0.40%, and the NDX/NAZ were -0.30%. Bonds lost 16 ticks, Crude gained $1.15, Gold dropped $31, and the USD was higher. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow: Auto sales.
The market opened higher today, pulled back, made a higher high, then pulled back even more. Today’s high came within four SPX points of the all time high. But today’s low was lower than all of last week. i.e. SPX 1799 v 1801. This would suggest the short term trend is still lower. The parameters mentioned over the weekend remain.
Short term support is at the 1779 pivot and SPX 1746, with resistance at SPX 1810, SPX 1818 and the 1828 pivot. Short term momentum continues to decline from Friday’s negative divergence. The short term OEW charts turned negative today with the reversal level now SPX 1805. Best to your trading and holiday season!
MEDIUM TERM: uptrend
LONG TERM: bull market