SHORT TERM: another bungee cord day, DOW unchanged
Overnight the Asian markets lost 0.3%. Europe opened higher and gained 0.4%. US index futures were higher overnight. At 8:30 weekly Jobless clams were reported higher: 329k v 304k, and Durable goods orders were higher: +2.6% v +2.2%. The market gapped up at the open to SPX 1883, ticked up to 1884, and then immediately began to pullback. The SPX had closed had closed at 1875 yesterday. Before 10am the SPX closed the opening gap when hitting 1871, then bounced to 1877 by 10am. Another pullback quickly moved the SPX to 1870. Then after a rally to SPX 1883 by 11:30 the market started to pullback again. At 2pm the SPX hit 1875, bounced to 1880 by 3pm, then dipped to close at 1879.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.75%. Bonds were flat, Crude added 55 cents, Gold rose $8, and the USD was lower. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: Consumer sentiment at 10am.
The market gapped up at the open today, led by the AAPL related surge in the NDX futures. Then after a few minutes of trading the gap up and surge all dissipated, as the action looked like the recent nearly 10% correction in the NDX/NAZ. Just past 10am the market made its low for the day and then rallied. After a straight up rally from SPX 1816-1885 over the past week, the market has pulled back: 1874-1884-1870. Today’s low should have ended Minor wave 2.
Short term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum went from oversold, to quite overbought, to below neutral today. The short term OEW charts remains positive with the reversal level now SPX 1872. Best to your trading!
MEDIUM TERM: uptrend probable
LONG TERM: bull market