SHORT TERM: gap down opening, DOW -55
Overnight the Asian markets lost 0.9%. Europe opened lower and lost 1.5%. US index futures were lower overnight, and at 9am Case-Shiller was reported lower. The market gapped down at the open to SPX 2085, then after a bounce to 2087 by 10am the market headed lower again. At 10am Consumer confidence was reported higher: 92.6 v 90.0. The market found short term support at SPX 2082, bounced to 2086 by 11am, then dropped to 2080 by 2pm. After a rally to SPX 2084 by 3:30, the market closed at the low 2080.
For the day the SPX/DOW were -0.40%, and the NDX/NAZ were -0.65%. Bonds gained 6 ticks, Crude ended flat, Gold rallied $14, and the USD was lower. Medium term support drops to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow is the last trading day of the year.
The market gapped down at the open today, bounced around a bit, and then hit SPX 2080 by 2pm. This 14 point pullback, 2094-2080, equals the second largest of the uptrend. We can now count Minute wave one with four waves from SPX 1973: 2012-1992-2094-2080 so far. Posted the count on the hourly chart. With short term momentum hitting quite oversold today, this 4th wave may be over or will make a lower low tomorrow. Then we should get another rally to new highs to end Minute wave one of this Minor wave 3 uptrend. So it looks like the market could be choppy for a few days, as Minute waves i and ii complete. Short term support is now at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Short term momentum bounced off quite oversold in the last two hours of trading. Happy new year!
MEDIUM TERM: uptrend
LONG TERM: bull market