SHORT TERM: gap down opening and choppy day, DOW -150
Overnight the Asian markets lost 0.3%. Europe opened lower and lost 0.5%. US index futures were sharply lower overnight. At 8:30 Personal income (0.0% v +0.2%)/spending (+0.4% v +0.5%) were reported neutral to higher, and PCE prices were reported higher: +0.1% v +0.1%. The market gapped down at the open to SPX 1778, hit 1772 in the first few minutes, and then started to rebound. The SPX had closed at 1794 yesterday. At 9:45 the Chicago PMI was reported higher: 59.6 v 59.1. Then near 10am Consumer sentiment was reported higher: 81.2 v 80.4. The rebound hit SPX 1779 just past 10am. Then after a pullback to SPX 1774 by 10:30, the market moved higher again. Around noon the SPX hit 1789, dipped to 1784 by 1:30, then hit 1794 by 3pm. After that the market pulled back to SPX 1781 just before the close, then ticked up to end the week at 1783. Wild day!
For the day the SPX/DOW were -0.80%, and the NDX/NAZ were -0.40%. Bonds gained 13 ticks, Crude slid 80 cents, Gold added $2, and the USD was higher. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Last night the FED reported a record high in the Monetary base: $3.819tn v $3.666tn, plus a record low in the M1-mutiplier: 0.699 v 0.718. Today the economically sensitive WLEI was reported higher: 54.3% v 54.2%.
A big gap down opening took the market down over 20 points in the first few minutes of trading. After that there appeared to be some bargain hunting as the market chopped its way higher, closing the opening gap by 3pm. Then the market slid again into the close. While this market was doing its gyrations we spent the afternoon working on the weekend update. It is already quite extensive, and not done yet.
Shot term support remains at the 1779 pivot and SPX 1768, with resistance at SPX 1800 and SPX 1814. Short term momentum hit oversold early, then bounced to neutral, ending below neutral. The short term OEW charts remained negative with the reversal level now SPX 1792. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bull market