SHORT TERM: techs tank, DOW +44
Overnight the Asian markets lost 1.0%. Europe opened lower and lost 0.1%. US index futures were sharply lower overnight, then recovered heading into the open. At 8:30 the NY FED was reported higher: 27.5 v 14.7, but at 9:15 Industrial production was reported lower: -0.1% v +0.4%. The market opened unchanged at SPX 1986, then pulled back to 1978 by 10am. After a rally to SPX 1985 by 10:30, the market pulled back to 1979 by noon. After that the market worked its way to the high for the day at SPX 1987, before dipping to a 1984 close.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -1.0%. Bonds gained 7 ticks, Crude rose 55 cents, Gold added $3, and the USD was flat. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: PPI at 8:30, Senate testimony from FED director Hunter at 10am, and the FED starts its FOMC meeting.
After the futures went sharply lower at the open last night, they spent the rest of pre-market rebounding. The market opened unchanged, but made a slightly lower low for the pullback at SPX 1978. In the mean time the NDX/NAZ were under selling pressure all day, as high multiple growth stocks were being sold. Selling to purchase BABA’s IPO this week? We did get that rally we were expecting as the SPX hit 1987. Next we would expect the market to rollover again into the OEW 1973 pivot. 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 around neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market