SHORT TERM: gap down opening, DOW -98
Overnight the Asian markets ended mixed. Europe opened lower and lost 0.4%. US index futures were lower overnight, and the market gapped down to SPX 1997 at the open. The SPX had closed at 2002 yesterday. At 10am FED governor Tarullo gave his senate testimony: http://www.federalreserve.gov/newsevents/testimony/tarullo20140909a.htm. At 10:30 the SPX hit 1991, displayed a very slight positive divergence, and tried to rally. By 11:30 the SPX hit 1997. Then after a pullback to SPX 1992 by 1pm, the AAPL presentation started and the market rallied to 2000 by 2pm. Then it started to pullback again. Around 3:30 the SPX hit 1985, then bounced to close at 1988.
For the day the SPX/DOW were -0.60%, and the NDX/NAZ were -0.85%. Bonds lost 10 ticks, Crude added 5 cents, Gold gained $2, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: Wholesale inventories at 10am.
The market gapped down at the open for the first time in nearly two weeks. The pullback found support around the SPX 1990 area again, and the market rallied back to 2000. In late afternoon the SPX broke below the 1990 level, which had been support for more than two weeks. The five waves up count, from SPX 1905 to 2011, appears to be confirmed. The market looks like it will test the OEW 1973 pivot range next. Pullbacks, during uptrends, have typically taken 3-5 days. This is day three.
Short term support is at the 1973 and 1956 pivots, with resistance at SPX 2011 and the 2019 pivot. Short term momentum ended the day oversold. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market