SHORT TERM: gap down opening, DOW -3
Overnight the Asian markets gained 0.5%. US index futures were lower overnight, and the market gapped down to SPX 2032. The market had closed at SPX 2040 yesterday. At 10am Wholesale inventories were reported higher: +0.3% v +0.7%. The market rallied to SPX 2037 by 10:30, pulled back to 2032 by 11am, and then moved higher. Around 2:30 the market could not break through SPX 2040, then pulled back to 2035 by 3pm, before bouncing to 2038 by the close.
For the day the SPX/DOW were -0.05%, and the NDX/NAZ were +0.25%. Bonds gained 6 ticks, Crude dropped $1.15, Gold slid $5, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: weekly Jobless claims at 8:30, a speech by FED chair Yellen at 12:45, then the Budget deficit at 2pm.
The market gapped down at the open today, made a low at SPX 2032, retested that low, then tried to move higher but couldn’t reach yesterday’s 2041 high. For those counting, today was only the second day, during the entire uptrend, that the SPX made a lower low than the day before. Still a good uptrend, but it is not as strong as it was, when it made the first daily reversal on the second trading day of November. The February uptrend, btw, also had a spike up beginning, then went into drift higher mode until it made its high. Same goes for the June 2013 uptrend. Short term support remains at the 2019 pivot and SPX 2000, with resistance at SPX 2049 and the 2070 pivot. Short term momentum nearly hit oversold today and momentum ended above neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market