SHORT TERM: gap down then calm, DOW -21
Overnight the Asian markets gained 0.8%. Europe opened lower and lost 0.4%. US index futures were lower overnight, and the market gapped down to SPX 1920 at the open. The SPX had closed at 1925 yesterday. In the opening minutes the market dipped to SPX 1919, then rallied to 1924 by 10am. At 10am Factory orders were reported positive: +0.7% v +1.1%, and Auto sales hit early-2007 levels. The market then pulled back to SPX 1919 again by 11:30, and then started to rally. At noon the FED released this: http://www.federalreserve.gov/newsevents/press/monetary/20140603a.htm. At 2:30 the SPX hit 1925, then dipped to end the day at 1924.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ were -0.10%. Bonds lost 16 ticks, Crude added 35 cents, Gold rose $3, and the USD was lower. Medium term support remains at the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Tomorrow: the ADP index at 8:15, the Trade deficit at 8:30, ISM services at 10am, then the FED’s beige book at 2pm.
After an uninterrupted 70+ point rally, this market has had two days of choppiness with little downside pressure. Even the gap down opening today had little follow through. Tomorrow, the FED’s Beige book. We are still counting five waves up from the Minute ii low at SPX 1862: 1886-1868-1925-1916-1926. Waiting for a decline to 1917, or lower, to suggest Minute iii is done. Or, a rally above 1926 to suggest it is not. Either way, the overhead trend line and the 1929 pivot continue to act as resistance.
Short term support is at the 1901 pivot and SPX 1891, with resistance at the 1929 and 1956 pivots. Short term momentum traded above and below neutral today. The short term OEW charts flip-flopped again, ending positive, with the reversal level now at SPX 1923. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market