SHORT TERM: pullback/rebound Monday, DOW +26
Overnight the Asian markets gained 1.4%. Europe opened higher but gained only 0.1%. US index futures were higher overnight. The market opened one point above Friday’s SPX 1924 close, and then began to pullback. At 10am ISM manufacturing was reported at three different figures, the last 55.4% v 54.9%, plus Construction spending was reported higher: +0.2% v +0.2%. Right after 10am the SPX hit 1916, for the first notable pullback in over a week, then began to rally. Heading into the close he SPX hit 1926 then dipped to close at 1925.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were -0.10%. Bonds lost 20 ticks, Crude slipped 25 cents, Gold dropped $7, and the USD was higher. Medium term support remains at the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Tomorrow: Factory orders and Auto sales at 10am.
The market opened at a marginal ATH to morning then immediately pulled back to SPX 1916. This pullback clears out some of the negative divergences of last week. But it also displays resistance at another short term trend line, and the OEW 1929 pivot. The most obvious count, barring an extension, would suggest this uptrend is now nearing the completion of Minute iii of Minor wave 3. Another 9+ point pullback would likely confirm this count.
Short term support is at the 1901 pivot and SPX 1891, with resistance at the 1929 and 1956 pivots. Short term momentum hit neutral this am and then rebounded. The short term OEW charts turned negative at SPX 1918, then positive again shortly thereafter, with the reversal level now 1922. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market