SHORT TERM: another quiet day, DOW +1
Overnight the Asian markets gained 0.8%, mostly Japan. Europe opened higher and gained 0.3%. US index futures were higher overnight, and the market opened one point over yesterday’s SPX 2038 close. In the opening minutes the market dipped to SPX 2035, then rallied to 2041 by 11am. Then after a pullback to SPX 2036 by 1:30, the market moved higher to close at 2040.
For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.25%. Bonds lost 2 ticks, Crude added 20 cents, Gold rose $16, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Today long term investor sentiment (MMIS) reported a decline to 54.1% v 56.7%. Tomorrow: Wholesale inventories at 10am.
The market opened slightly higher today, pulled back to SPX 2035 in the opening minutes, rallied to 2041 by 11am, and then stayed in that trading range for the rest of the day. Another small range bound day, with slightly higher highs. While the market has been drifting slightly higher these past several trading days. One would have thought that the daily overbought indicators would have been at least flattening out. But they have not. They remain quite overbought in the SPX/DOW, but with negative divergences in the NDX/NAZ. Short term support remains at the 2019 pivot and SPX 2000, with resistance at SPX 2049 and the 2070 pivot. Short term momentum has been drifting between neutral and overbought the last two days. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market