SHORT TERM: higher open then pullback, DOW -153
Overnight the Asian markets gained 1.6%. Europe opened lower but gained 0.5%. US index futures were lower, then higher overnight, and at 8:30 the CPI was reported higher: +0.1% v 0.0%. The market opened three points above yesterday’s SPX 1941 close, dipped to 1940, then rallied to 1947 by 10am. Then after a small pullback to SPX 1942 just past 10am, the market rallied to the high of the day at 1949 by 11:30. After that the market started to pullback. Just before 1pm the SPX hit 1935, bounced to 1941 just after 1pm, then dropped to 1930 by 2:30. Another rallied followed to SPX 1938 by 3pm, but the market headed lower and closed at the low of the day 1927.
For the day the SPX/DOW were -0.80%, and the NDX/NAZ were -0.70%. Bonds lost 6 ticks, Crude dropped $2.10, Gold slipped $7, and the USD was higher. Medium term support drops to the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Tomorrow: weekly Jobless claims at 8:30, the FHFA at 9am, then Leading indicators at 10am.
The market opened higher today, rallied right the edge of the OEW 1956 pivot range, then started to pullback for the first time since Monday’s open. The rally from last week’s Major A low at SPX 1821 has progressed in three Minor waves: 1898-1878-1949. At today’s high wave ‘c’ was nearly equal to wave ‘a’. This may have completed Int. wave A, and a downward Int. B could be underway. Support for Int. B should arrive at the 1901 or 1869 pivots. After that we should see another three wave rally to complete Int. C/Major B. Should the market hold the OEW 1929 pivot range, there is the possibility of one more push to the 1956 pivot to form a negative short term divergence. Then Int. B would follow. Best to your trading!
MEDIUM TERM: Major B uptrend probably underway
LONG TERM: bull market