SHORT TERM: gap down opening, DOW -11
Overnight the Asian markets lost 1.4%. European markets opened lower and lost 1.0%. US index futures were lower overnight and the market gapped down to SPX 1860 at the open. The SPX had closed at 1868 yesterday. In the opening minutes the SPX dropped to 1854, a 61.8% retracement of the recent rally, and then began to rally. By 11:30 the SPX hit 1868 to close the downside gap, and then began to drift lower. At 3:30 the SPX hit 1863, then bounced to 1868 ending the day unchanged.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.40%. Bonds gained 10 ticks, Crude dropped $1.80, Gold rallied $19, and the USD was lower. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1901 pivots. Tomorrow: weekly Jobless claims at 8:30, along with Retail sales, and Export/Import prices, then Business inventories at 10am.
The market gapped down at the open today for the first time since March 3rd. Then found support at SPX 1854, exactly 30 points below the recent 1884 high. This pullback falls within the 18 to 34 point range, during this uptrend from SPX 1738. This pullback, however, was larger than expected for a Minute wave two. Should the market continue to fall and drop below SPX 1850 we would get a little concerned for the medium term. Should the market rally back above SPX 1870 the short term trend would start to look positive again.
Short term support is at SPX 1859 and the 1841 pivot, with resistance at the 1869 pivot and SPX 1884. Short term momentum hit extremely oversold this morning, then moved back above neutral. The short term OEW charts remain negative with the reversal level now SPX 1870. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market