SHORT TERM: consolidation day, DOW -65
Overnight the Asian markets were mixed. Europe opened higher but closed -0.2%. US index futures were lower overnight. At 8:30 weekly Jobless claims were reported lower: 326k v 330k, and the CPI was reported higher: +0.3% v 0.0%. The market opened three points below yesterday’s SPX 1848 close, dipped to 1842 in the opening minutes, then bounced to 1846 by 10am. At 10 am the Philly FED was reported higher: 9.4 v 7.0, but the NAHB was reported lower: 56 v 58. The market then pulled back to SPX 1840 by 11am. The first noticeable pullback since the rally began at SPX 1816. After that the market started to move higher. At 1:30 the SPX hit 1846, pulled back to 1843 just before the close, then closed at 1846.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ +0.05%. Bonds gained 10 ticks, Crude slipped 5 cents, Gold added $2, and the USD was lower. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Tomorrow: Housing starts and Building permits at 8:30, Industrial production at 9:15, Consumer sentiment at 10am, and it is Options expiration Friday.
The market opened lower today extending the pullback that started yesterday, after the new high: SPX 1851 @ 11am. The pullback reached SPX 1840, 11 points, which is normal for a Minute wave during this uptrend. As long as the OEW 1841 pivot range holds during this pullback the market remains on course. After Minute ii concludes, which might have been at today’s low, Minute iii should be underway.
Short term support remains at the 1841 and 1828 pivots, with resistance now at SPX 1851 and the 1869 pivots. Short term momentum dropped below neutral during today’s pullback, after hitting extremely overbought yesterday. The short term OEW charts remain positive with the reversal level now SPX 1841. Best your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market