SHORT TERM: consolidation continues, DOW -10
Overnight the Asian markets lost 0.6%. Europe opened lower and lost 0.6% as well. US index futures were higher overnight, but the market opened one point below Friday’s SPX 1963 close. In the opening minutes the market dipped to SPX 1960, then bounced to 1964 by 10am. At 10am Existing home sales were reported higher: 4.89mn v 4.65mn. The market then pulled back to SPX 1959 by 11:30, and went into a four point trading range for the rest of the day. Heading into to the close the SPX hit 1963 and finished there.
For the day the SPX/DOW were -0.05%, and the NDX/NAZ were +0.05%. Bonds dipped 1 tick, Crude lost 65 cents, Gold rose $4, and the USD was lower. Medium term support remains at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Tomorrow: Case-Shiller and FHFA housing at 9am, then New home sales and Consumer confidence at 10am.
The market opened slightly lower today, retouched the high at SPX 1964, pulled back to 1959, and then went into a trading range for the rest of the day. Today’s small 5 point range was actually larger than option expiration Friday’s 3 point range. There certainly appears to be a balance of buyers and sellers at current levels. In the meantime, Friday’s short term overbought condition has been worked off as the RSI has dropped down to neutral. Up, down, more sideways tomorrow? Tough call with the market currently balanced. We are still waiting for at least a 10 point pullback, to signal Minor wave 3 could be over. So far the pullback has only be five points.
Short term support is at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Short term momentum hit neutral today. The short term OEW charts remain positive with the reversal level now SPX 1960. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market