SHORT TERM: another gap up opening sold, DOW -99
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.7%. US index futures were again higher overnight, and at 8:30 Durable goods orders were reported higher: +2.2% v -1.0%. The market gapped up at the open to SPX 1875, nudged higher to 1876, and then began to pullback. The market had closed at SPX 1866 yesterday. Then just like yesterday, the day before, and the day before that, the Growth indices led the market lower. With only two 4 point bounces along the way the SPX closed the opening gap and hit 1858 by 2:30. The market then bounced to SPX 1864 by 3pm, but headed lower and closed at 1853.
For the day the SPX/DOW were -0.65%, and the NDX/NAZ were -1.35%. Bonds gained 11 ticks, Crude rallied $1.00, Gold slid $10, and the USD was flat. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1901 pivots. Tomorrow: Q4 GDP (est. +2.6%) and weekly Jobless claims at 8:30, then Pending home sales at 10am.
The market gapped up at the open today, hit its high in the first hour, and then began to retreat. The same exact pattern for the past four days. The net result of the past four days, even after three gap up openings, is a net loss of 19 points. This reminds me of the first full week in January. Then we had four gap up openings for the week, three of the four were sold, with a net gain of only 11 points. The uptrend topped three trading days later, and the market entered a three week correction losing 6.1%. That time the selling was led by the DOW. This time it appears to be the NDX/NAZ.
Short term support remains at the 1841 and 1828 pivots, with resistance at the 1869 pivot and SPX 1884. Short term momentum hit overbought today then immediately retreated to oversold. The short OEW charts continue to vacillate with the reversal level now SPX 1865. Best to your trading of Q4 GDP day!
MEDIUM TERM: uptrend weakening
LONG TERM: bull market