SHORT TERM: gap down and decline again, DOW -318
Overnight the Asian markets lost 1.4%. Europe opened lower and lost 2.1%. US index futures were lower overnight, and the market gapped down at the open to SPX 1819. This opening was one point below yesterday’s low, and several points below yesterday’s SPX 1828 close. In the first 15 minutes the SPX dropped to 1812, then it bounced to 1817 by 10am before dropping to 1801 by 11:30. After that it tried to rally again but only made it back to SPX 1808 by noon. Then it dropped further. Heading into the close the SPX hit 1790 and closed there.
For the day the SPX/DOW were -2.00%, and the NDX/NAZ were -2.05%. Bonds gained 12 ticks, Crude slid 40 cents, Gold added $5, and the USD was higher. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Today the WLEI was reported higher: 54.2% v 53.7%.
The market gapped down again today for the second day in a row. It took out short term support at SPX 1814 in the opening minutes, then SPX 1800 in the afternoon. Over the last two days the market has gapped down twice, and dropped from SPX 1845 to 1790 with only one rally in between (1820-1829). Most of the other rallies have been bounces of five points or less. It appears this market is reaching an important decision point. Either turn around and resume the uptrend, or break down and possibly confirm a Primary wave IV correction. More on this in the weekend report.
Short term support has dropped to the 1779 pivot and SPX 1768, with resistance at SPX 1800 and SPX 1814. Short term momentum remains extremely oversold. The short term OEW charts remain negative with the reversal level now SPX 1825. Best to your weekend!
MEDIUM TERM: uptrend weakening
LONG TERM: bull market