SHORT TERM: gap down opening, DOW +18
Overnight the Asian markets gained 0.8%, mostly Japan. Europe opened lower and lost 1.0% for the second day in a row. US index futures were lower overnight, and at 8:30 the Trade deficit was reported larger: -$43.0bn v -$40.1bn. The market gapped down to SPX 2013 at the open, ticked up to 2015, dipped to 2011, then bounced to 2016 by 10am. The SPX had closed at 2018 yesterday. Also at 10am Factory orders were reported lower: -0.4% v -0.8%. The market then declined to SPX 2001 by 11am. After that it had a rally to SPX 2012 by 12:30, a pullback to 2007 by 1:30, then another rally to 2014 by 2pm. The choppy activity continued as the market pulled back to SPX 2009 by 2:30, then bounced to close at 2012.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.30%. Bonds gained 3 ticks, Crude lost $1.65, Gold added $1, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance still at the 2019 and 2070 pivots. Tomorrow: ADP at 8:15, then ISM Services at 10am.
The market gapped down at the open today for the third time during this uptrend. After bouncing around in the first hour the market dropped to SPX 2001. Another, of several, 20+ point pullbacks during this uptrend. However, what was different today is that the uptrend failed to make a higher daily high and higher low. In fact, for the first time in thirteen days the market made a lower high and lower low than the day before. Is the character of this uptrend changing. After the low of the day the market then recovered some of the decline in the afternoon. Short term support remains at SPX 2000 and the 1973 pivot, with resistance at the 2019 and 2070 pivots. Short term momentum hit oversold for the first time during this entire uptrend, then finished the day at neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market