SHORT TERM: pullback continues, DOW -34
Overnight the Asian markets lost 0.9%. European markets opened lower and lost 0.4%. US index futures were lower overnight as well. The market opened four points below Friday’s SPX 1878 close. In the opening minutes the market dipped to SPX 1873, bounced back to 1878, then headed lower. Around 11am the SPX hit 1867, slightly lower than Friday’s 1871. Then the market tried to rally. Heading into the close the SPX hit 1878 then dipped to close at 1877.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were mixed. Bonds gained 4 ticks, Crude lost $1.50, Gold added $1, and the USD was higher. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1962 pivots. Tomorrow: Wholesale inventories at 10am.
The market opened lower today, bounced back to unchanged, then dropped slightly below Friday’s low to SPX 1867. After that the market rallied to SPX 1874/75. But had a difficult time breaking through that level until the last hour of trading. Thus far, the pullback from Friday’s SPX 1884 high has been 17 points. Important pullbacks, during this uptrend, have been between 18 and 34 points, with the less significant ones between 18 and 23 points. So today’s low nearly reached that range. Also, at today’s low the market was quite oversold. We still feel a rally to SPX 1880 is required to get Minute iii underway in earnest. But SPX 1876 may have provided an early indication, and we posted a tentative Minute ii label at today’s low.
Short term support is at the 1869 pivot and SPX 1859, with resistance at SPX 1884 and the 1901 pivot. Short term momentum hit quite oversold then bounced above neutral. The short term OEW charts turned negative in the morning, then ended the day positive with the reversal level now at SPX 1872. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market