SHORT TERM: pullback continues, DOW -110
Overnight the Asian markets lost 0.2%. Europe opened lower but ended mixed. US index futures were lower overnight. At 8:30 weekly Jobless claims were reported higher: 317k v 312k, Retail sales were reported higher: +0.3% v +0.1%, Export prices were reported higher: +0.1% v -1.2%, and Import prices remained flat: 0.0% v 0.0%. The market opened two points below yesterday’s SPX 1944 close, bounced around a bit, and then hit 1935 by 10:30. At 10am Business inventories were reported higher: +0.6% v +0.4%. After a bounce to SPX 1939 by 11:30, then market headed lower. At 3:30 the SPX hit 1926, bounced to 1931, then closed at 1930.
For the day the SPX/DOW were -0.70%, and the NDX/NAZ were -0.85%. Bonds gained 15 ticks, Crude rallied $2.30, Gold rose $12, and the USD was lower. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: the PPI at 8:30, then Consumer sentiment at 10am.
The market opened slightly lower today, pulled back, bounced, and then entered the OEW 1929 pivot range. Around 3:30 the SPX hit 1926, which represents a 30 point pullback from the recent 1956 high. This Minute wave iv pullback is similar to the Minute wave ii 31 point pullback in early May. That one was an irregular flat, and this one looks like a zigzag. The other technical parameters we have been observing have all been met. Expecting a Minute wave iv low quite soon, as long as the 1929 pivot range holds.
Short term support is at the 1929 pivot and SPX 1916-1919, with resistance at the 1956 and 1973 pivots. Short term momentum hit extremely oversold at today’s low. The short term OEW charts are still negative with the reversal level now SPX 1937. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market