SHORT TERM: pullback resumes, DOW -61
Overnight the Asian markets lost 0.1%. Europe opened higher but lost 0.1%. US index futures were lower overnight. At 8:30 Retail sales were reported higher: +0.6% v o.o%, and Export (-0.3% v +0.3%)/Import (+0.1% v 0.0%) prices were mixed. The market opened three points below yesterday’s SPX 1997 close, and continued to pullback. At 10am Consumer sentiment was reported higher: 84.6 v 82.5, Business inventories were reported higher: +0.4% v +0.4%, and the SPX hit 1987. The market then rallied to SPX 1993 by 11am before heading lower again. At 2:30 the SPX made a new low for the pullback at 1980, and then tried to rally. Heading into the close the SPX hit 1986 and closed there.
For the day the SPX/DOW were -0.50%, and the NDX/NAZ were -0.55%. Bonds lost 15 ticks, Crude lost 60 cents, Gold dropped $11, and the USD was lower. Today the WLEI was reported lower: 51.7% v 51.8%. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots.
The market opened lower today then dropped nearly to yesterday’s low at SPX 1986. After yesterday afternoon’s activity we thought short term sentiment had turned positive. We were badly mistaken. Not only did it not turn positive, but the market made a lower low for the pullback at SPX 1980. Right at the upper end of the 1973 pivot range. After that we got a small bounce into the close. Will review this choppy pullback to see if it is giving some hints of its conclusion. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market