SHORT TERM: turnaround Tuesday, DOW -138
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.4%. US index futures were lower overnight, and the market opened one point below yesterday’s SPX 1885 close. The market continued to pullback until 10:30 when the SPX hit 1877. After a bounce to SPX 1883 the market headed lower again. At 2pm the SPX hit 1868, then rallied to 1876 by 3:30, before ending the day at 1873.
For the day the SPX/DOW were -0.75%, and the NDX/NAZ were -0.55%. Bonds gained 7 ticks, Crude added 40 cents, Gold rose $1, and the USD was higher. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: a speech from FED chair Yellen at 11:30, then the FOMC minutes at 2pm.
The market opened slightly lower today then accelerated to the downside until around 2pm. Thus far the market has retraced all but six points of the recent SPX 1862-1886 rally. The DOW fully retraced its rally, but the NAZ has retraced only about half. Relative strength appearing in the growth indices. Recent lows have occurred at SPX 1862 and 1860. These levels could be retested again. However, with a positive divergence now appearing in the DOW hourly chart we should see at least a rebound first. Best case, today marks an important low. Not so best case, we retest SPX 1860/1862 again. In either case the uptrend should resume shortly.
Short term support is at the 1869 pivot and SPX 1860, with resistance at SPX 1886 and the 1901 pivot. Short term momentum hit oversold this morning then bounced. The short term OEW charts turned negative at SPX 1880, with the reversal level now at 1876. Best to your trading the FOMC minutes.
MEDIUM TERM: uptrend
LONG TERM: bull market