SHORT TERM: gap up opening then selloff, DOW -160
Overnight the Asian markets lost 0.3%. European markets opened higher and gained 0.7%. US index futures were higher overnight. At 8:30 monthly Payrolls were reported higher: 192k v 175k, and the Unemployment rate was unchanged at 6.7%. The market gapped up at the open to SPX 1897, then began to pullback. The SPX had closed at 1889 yesterday. Within the first hour of trading the SPX then dipped to 1889, bounced back 1897, dipped to 1892, then hit 1897 again just past 10:30. After what appeared to be a diagonal triangle the market started to pullback. The pullback continued into the afternoon, with only 4 point bounces along the way, and the SPX hit 1863 at 2:30. Then the market tried to rally. At 3:30 the SPX hit 1871, but pulled back into the close to ened the week at 1865.
For the day the SPX/DOW were -1.10%, and the NDX/NAZ were -2.65%. Bonds gained 22 ticks, Crude rose 85 cents, Gold rallied $17, and the USD was lower. Medium term support drops to the 1841 and 1828 pivots, with resistance at the 1869 and 1901 pivots. Today the WLEI was reported higher: 53.0% v 52.9%.
The market gapped up to a new all time high today. Then hit that high two more times as the NDX/NAZ were being sold from the open – just like yesterday. After about an hour the SPX/DOW gave way as the NDX/NAZ continued to trend lower. By the end of the day the SPX had travelled from the 1901 pivot range to the 1869 pivot range. Early this morning we had counted five waves up from the recent SPX 1843 low: 1864-1853-1894-1883-1897. And we labeled today’s high the end of Minute wave one. Apparently it appeared to have ended in a diagonal triangle fifth wave, and the market sold off sharply. More on today’s action and its implications in the weekend update.
Short term support drops to the 1841 and 1828 pivots, with resistance at the 1869 and 1901 pivots. Short term momentum ended the day extremely oversold. The short term OEW charts swung negative at SPX 1880 and ended the day negative, with the reversal level now 1878. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market