SHORT TERM: gap down opening, DOW +12
Overnight the Asian markets lost 0.2%. Europe opened higher but lost 0.8%. US index futures were lower overnight, and the market gapped down to SPX 1958 at the open. The SPX had closed at 1965 on Friday. In the first half hour of trading the SPX hit 1951, the low for the day, and then began to rally. At 10am Pending home sales were reported higher: +0.3% v -1.0%. By 11am the SPX had rallied back to 1965 to close the opening gap. Then after a pullback to SPX 1956 by noon, it rallied to 1964 by 1:30. Then after a pullback to SPX 1958 by 3pm, the market bounced to close at 1962.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.10%. Bonds gained 4 ticks, Crude dipped 25 cents, Gold slipped $3, and the USD was lower. Medium term support remains at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Tomorrow: Durable goods orders at 8:30, Case-Shiller at 9am, Consumer confidence at 10am, and the FED starts its two day FOMC meeting.
The market gapped down at the open today, for the first time since this rally began about two weeks ago. The down opening took the SPX to 1951, but the market quickly recovered to close the gap at 1965. After that it traded within that opening range for the rest of the day. While the US market has recouped nearly 73% of the recent downtrend. Europe has barely retraced 50% of their downtrend, and was down 0.8% today. Europe led lower during Primary II, and is doing so again during Primary IV. Throughout this rally, which is now in its eight day, every day had produced a higher high and high low from the day before. Except today. Today the SPX only matched Friday’s high (1965), and made a higher low (1951). A reversal in this trend may help in determining the Major B high. Short term support at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Short term momentum dropped to neutral after Friday’s negative divergence. Best to your trading!
MEDIUM TERM: Major wave B uptrend probably underway
LONG TERM: bull market