SHORT TERM: OPEX pullback continues, DOW -107
Overnight the Asian markets lost 0.6%. European markets opened lower and lost 0.5%. US index futures were lower overnight, and the market opened lower at SPX 2006. The SPX had closed at 2010 on Friday. The market continued to pullback, and at 10am Existing home sales were reported lower: 5.05mn v 5.15mn. The pullback continued until noon when the SPX hit 1992. Then after a bounce to SPX 1997 by 1:30, the market headed lower again. At 2:30 the SPX hit 1991, bounced to 1996 by 3:30, then end the day at 1994.
For the day the SPX/DOW were -0.70%, and the NDX/NAZ were -1.05%. Bonds gained 12 ticks, Crude lost 85 cents, Gold slipped $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: a speech from FED governor Powell at 9:20, then New home sales at 10am.
The market opened lower today, then pulled back to SPX 1992 before it even had a five point bounce. Even though we had posted short term support at SPX 2000 and SPX 1993, this was a bit more than expected. Thus far we have had a rally from SPX 1979 to 2019, and now a pullback to 1991: 40 points up, 28 points down. So far it still looks like a Minute i to 2019, and a Minute ii to today’s low.
Should we get another day like today the Minute wave short term count will probably fail, and the next logical support level would be the 1973 pivot range. Still no damage to the uptrend as the market could still be in an irregular Minor 2: 1979-2019-1979+/-. Currently looking for some sort of bounce/rally off the slight positive divergence on the hourly chart. Short term support is the 1973 and 1956 pivots, with resistance now at SPX 2000 and the 2019 pivot. Short term momentum hit extremely oversold today, and now displays a slight +div. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market