SHORT TERM: choppy day, DOW +19
Overnight the Asian markets lost 0.1%. Europe opened higher but lost 0.1% too. US index futures were higher overnight. At 8:30 Personal income was reported higher +0.2% v +0.4%, spending lower -0.1% v +0.4%, and the PCE higher: +0.1% v +0.1%. The market opened four points above yesterday’s SPX 1997 close then immediately started to pullback. At 9:45 the Chicago PMI was reported higher: 64.3 v 52.6, and at 10am Consumer sentiment was reported higher: 82.5 v 79.2. The pullback continued until about 10:30 when the SPX hit 1995. Then the market started to rally. At 12:30 the SPX hit 2003, pulled back to 1999 by 3pm, then closed at 2003.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.45%. Bonds lost 3 ticks, Crude gained $1.30, Gold slipped $2, and the USD was higher. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Today the WLEI was reported lower: 52.3% v 52.8%.
The market opened higher today, dipped to SPX 1995, rallied to 2003, dipped to 1999, then closed at 2003. At the end it was a positive day after all the volatility in Europe. With today’s higher highs it looks like Minor wave 4 ended at SPX 1991 yesterday. We will wait until the SPX hits 2005 before updating that green label to dark blue. Reviewed the major indices during today’s quiet session. Looks like we are fast approaching another inflection point.
Short term support is at SPX 1985 and the 1973 pivot, with resistance at SPX 2005 and the 2019 pivot. Short term momentum ended the day overbought. The short term OEW charts turned positive with the reversal level now SPX 1999. Best to your three day weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market