SHORT TERM: consolidation day, DOW -13
Overnight the Asian markets gained 0.2%. Europe opened higher, but lost 0.5%. US index futures were lower overnight, and the market opened two points below yesterday’s SPX 1880 close. After a short pop to SPX 1880 in the opening minutes the market pulled back to 1874 by 10am. At 10am New home sales were reported lower: 384k v 440k. The market then rallied back to SPX 1880 just before 11am. After that it started to drift lower. Around 3pm the SPX hit 1875, bounced, and then closed at 1875.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were -0.85%. Bonds gained 10 ticks, Crude slipped 30 cents, Gold dipped $1, and the USD was flat. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: weekly Jobless claims and Durable goods orders at 8:30.
After a rally from SPX 1816 last week, to 1885 Tuesday, the market had its first notable pullback. This is one of the largest rallies, without a pullback, in quite a long time. As a result of today’s action we placed a Minor wave 1 label on the DOW charts. As for the SPX, it may be a Minute i high, or Minor a. In either of the three scenarios the OEW 1869 pivot range should provide support.
Short term support is at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum hit oversold today. The short term OEW charts remain positive with the reversal level now SPX 1869. Best to your trading!
MEDIUM TERM: uptrend probable
LONG TERM: bull market