SHORT TERM: sloppy/choppy action continues, DOW +19
Overnight the Asian markets gained 0.2%. Europe opened lower and lost 0.4%. US index futures were higher overnight, and the market gapped up at the open to SPX 1850. The SPX had closed at 1845 yesterday. Right after the opening ticks the market started to pullback. At 10am New home sales were reported higher: 468k v 414k. By 10am the market had hit SPX 1843 and started to rally on that news. By 10:30 the SPX hit yesterday’s high at 1853 and began to pullback again. The pullback lasted the rest of the day with the SPX hitting 1841 just past 3pm, bouncing to 1846, and closing at 1845.
For the day the SPX/DOW were +0.05%, and the NDX/NAZ were mixed. Bonds gained 10 ticks, Crude rallied 65 cents, Gold fell $11, and the USD was higher. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Tomorrow: weekly Jobless claims and Durable goods orders at 8:30, then FED chair Yellen reports to the Senate at 10am.
The market gapped up at the open today, but it was immediately filled about 20 minutes into trading. Then after hitting SPX 1843, the market rallied to yesterday’s 1853 high, before dropping to a lower low at 1841. This choppiness has been underway since Monday noon. Prior to Monday, the market rallied in three waves up from SPX 1825 on Thursday, to Monday’s 1859. So one could say the market has actually been choppy since SPX 1825. While we have a couple of short term counts, such as the one on the DOW charts, we have posted a Minor 1 from 1738-1848, a Minute A to 1825, a Minute B to 1859 and now Minute C underway. We have seen an irregular second wave during this bull market before. It ended as a flat. Maybe this one will hit SPX 1825 to form a flat as well.
Short term support remains at the 1841 and 1828 pivots, with resistance at SPX 1851 and SPX 1859. Short term momentum vacillated above/below neutral today ending below. The short term OEW charts got whipped around again today, ending neutral with the reversal at SPX 1845. Best to your trading!
MEDIUM TERM: uptrend probable
LONG TERM: bull market