SHORT TERM: gap down opening, DOW -143
Overnight the Asian markets lost 1.2%. European markets opened lower and lost 1.3%. US index futures were lower overnight, and at 8:30 the PPI was reported higher: +0.5% v -0.1%. The market gapped down at the open to SPX 1823, dipped to 1820, and then began to rally. The SPX had closed at 1833 yesterday. At 10am the SPX hit 1830, and Consumer sentiment was reported higher: 82.6 v 80.0. Then after a pullback to SPX 1820 again, just past 10am, the market rallied to 1835 by 11:30. Another decline, to lower lows, at SPX 1814 followed by 3pm. Then after a rally to SPX 1823, the market pulled back to end the week at 1816.
For the day the SPX/DOW were -0.90%, and the NDX/NAZ were -1.25%. Medium term support drops to the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Last night the FED reported the M1-multiplier higher: 0.701 v 0.695, and today the WLEI was reported higher: 53.3% v 53.0%.
The market gapped down at the open today, hit SPX 1820, then rallied to close the gap before heading to 1814 in the afternoon. We noted yesterday, the most obvious count for the SPX/DOW was the ongoing Major wave 5 diagonal triangle posted on the DOW charts. Today we updated the SPX charts to reflect this pattern. We also included an alternate count, in green, that will be discussed in the weekend update.
Short term support is at SPX 1814 and SPX 1800, with resistance at the 1828 and 1841 pivots. Short term momentum is displaying a slight positive divergence at today’s lows. The short term OEW charts remain negative with the reversal level now SPX 1846. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bull market