SHORT TERM: quiet day as pullback continues, DOW +3
Overnight the Asian markets ended mixed. Europe opened lower but ended mixed as well. US index futures were lower overnight, and the market opened three points below yesterday’s SPX 1951 close. After a small bounce to SPX 1950 in the opening minutes, the market pulled back to 1945 by 10am. Also at 10am Wholesale inventories were reported higher: +1.1% v +1.1%. The market rallied back to SPX 1950 by 11am, and then went into a three point trading range. At 3:30 the SPX ticked up out of the range to 1951 and closed there.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.10%. Bonds lost 7 ticks, Crude added 15 cents, Gold rallied $7, and the USD was higher. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow there is nothing on the economic calendar.
The market opened lower today, dipped to SPX 1945, then tried to rally for the rest of the day. It appeared many of the momentum growth stocks were supporting the market. Nevertheless, the market has now pulled back 11 points from its all time high. This is the largest pullback since mid-May, when the market dropped from SPX 1886-1868. While stock charts was down all day, and our usual indicators were unavailable, it still appears we have a Minute iv pullback underway. Still expecting support around the 1929 pivot range.
Short term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum was unavailable, as was the short term trend information. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market