SHORT TERM: consolidation day, DOW +26
Overnight the Asian markets gained 0.2%. European markets opened flat and lost 0.3%. US index futures were relatively flat overnight as well, and the market opened one point above Friday’s SPX 1841 close. After that the market continued its pullback. At 10am Pending home sales were reported higher: +0.2% v -0.6%. By 10:30 the market hit SPX 1839, then bounced to 1841 by 11:30. After a retest of SPX 1839 by 1pm, the market bounced back to the opening 1842. Then a pullback into a SPX 1841 close ended the day.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.10%. Bonds gained 9 ticks, Crude lost $1.10, Gold slid $17, and the USD was lower. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Nothing on the agenda for the last day of trading of the year tomorrow.
The market opened one point higher than Friday’s close. Then went into the narrowest trading range in 17 years, (three points), for the rest of the day. Not much to add to the weekend update. The market has only pulled back six points, thus far, from its SPX 1845 all time high posted on Friday. While it did look like there was some profiting taking today. It wasn’t enough to move the averages much.
Short term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Short term momentum dropped below neutral, but ended the day there. The short term OEW charts remain positive with the reversal level now SPX 1833. Happy New Year!
MEDIUM TERM: uptrend
LONG TERM: bull market