SHORT TERM: pullback monday, DOW -26
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.2%. US index futures were lower overnight, and the market opened three points below Friday’s SPX 2008 close. In the opening minutes the market ticked up to SPX 2007, then pulled back to 2001 by 10:30. After another rally to SPX 2006 by 11:30, the market pulled back to 1996 by 2pm. Then the market started to rally again. At 3pm Consumer credit was reported higher: $26.0 bn v $17.3 bn. At 3:30 the SPX hit 2003, then dipped to close at 2002.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were +0.20%. Bonds lost 5 ticks, Crude slipped 30 cents, Gold dropped $13, and the USD continued its rally. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Over the weekend long term Investor sentiment was reported lower: 57.3% v 57.5%. Tomorrow: Senate testimony from FED governor Tarullo at 10am.
The market opened lower today, bounced around near Friday’s high, and then pulled back to SPX 1996. Thus far it looks like the market is starting some sort of pullback from the SPX 2011 high: 1990-2008-1996 … This is the first time, since August 15th, that the market has had two notable pullbacks without making a higher high. Which was the only time that occurred during this entire uptrend. The market did hit short term oversold this morning, and has now bounced back to neutral. Let’s see what it does with this activity tomorrow. Short term support is at SPX 1990 and the 1973 pivot, with resistance at SPX 2011 and the 2019 pivot. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market