SHORT TERM: lower open then rally, DOW +22
Overnight the Asian markets gained 0.3%. European markets opened higher, but lost 0.1%. US index futures were lower overnight, and the market opened one point below Friday’s SPX 1978 close. In the opening minutes the SPX hit 1979 then began to pullback. At 10am Pending home sales were reported lower: -1.1% v +6.1%. Around 10:30 the SPX hit 1967, was extremely oversold, and began to rally. At 1:30 the SPX had rallied to 1982, then pulled back to close at 1979.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were mixed. Bonds lost 4 ticks, Crude slipped 50 cents, Gold dipped $2, and the USD was flat. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: Case-Shiller at 9am, then Consumer confidence at 10am.
The market opened slightly lower today, bounced, and then headed below Friday’s lows to SPX 1967. Then after getting extremely oversold, and barely holding the Minor wave 5 rising wedge scenario, the market started to rally. After the SPX hit 1976 we updated the SPX hourly chart with a Minute wave d at 1967. Under this diagonal triangle Minor 5 scenario the market should now hold that SPX 1967 low and rally to complete Minute wave e of the diagonal. The count posted on the SPX daily chart suggests a rally underway as well.
Short term support remains at the 1973 and 1956 pivots, with resistance at SPX 1991 and SPX 2000. Short term momentum hit extremely oversold early then rose to over neutral. The OEW short term charts turned positive, with the reversal level now SPX 1977. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market