SHORT TERM: gap down opening, DOW -102
Overnight the Asian markets lost 0.1%. European markets opened lower and lost 0.8%. US index futures were lower overnight, and the market gapped down to SPX 1943 at the open. The SPX had closed at 1951 yesterday. The market bounced to SPX 1946 by 10am, hit 1942 by 10:30, then hit 1946 again by 12:30. At 2pm the Budget deficit was reported lower: -$130.0bn v -$138.7bn. At 2:30 the SPX hit 1940, then it tried to rally. By 3:30 the SPX hit 1946 for the third time today, then pulled back to close at 1944.
For the day the SPX/DOW were -0.50%, and the NDX/NAZ were -0.10%. Bonds gained 3 ticks, Crude added 10 cents, Gold was flat, and the USD was flat. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: weekly Jobless claims, Retail sales and Export/Import prices at 8:30, then Business inventories at 10am.
The market gapped down at the open today, bounced around, and then hit SPX 1940. All along it appeared the growth momentum stocks were somewhat still supporting the general market. Thus far we have had a 16 point pullback from the SPX 1956 high. But it still appears to be rather short to call a potential completion of a Minute wave iv. In fact, the NDX/NAZ have hardly pulled back at all. We are still expecting this pullback to enter the 1929 pivot range.
Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum did hit oversold today at the low, the bounced. The short term OEW charts are negative with the reversal level now SPX 1945. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market