SHORT TERM: pullback mode today, DOW -171
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 1.9%. US index futures were lower, then higher after NFP. At 8:30 Payrolls were reported lower: 252k v 321k, but the Unemployment rate declined: 5.6% v 5.8%. The market opened two points above yesterday’s SPX 2062 close, and then immediately started to pullback. At 10am Wholesale inventories were reported higher: +0.8% v +0.4%. The pullback stair stepped its way lower (2051-2058-2043-2049) until it hit SPX 2038 by 11:30. Just when Europe closed. After that the market tried to rally. Around noon it hit SPX 2051, pulled back to 2043, then hit 2053 in the last hour of trading. Then a pullback to SPX 2045 ended the week.
For the day the SPX/DOW were -0.90%, and the NDX/NAZ were -0.65%. Bonds gained 17 ticks, Crude lost 55 cents, Gold rallied $13, and the USD was lower. Medium term support remains at the 2019 and 1970 pivots, with resistance at the 2070 and 2085 pivots. Today the WLEI was reported lower again: 45.6% v 46.1%.
The market opened at yesterday’s SPX 2064 high, then declined until 11:30 when it hit 2038. Then after a rally to SPX 2053 in the last hour of trading then the market pulled back to end the week at 2045. After reviewing the charts we are maintaining the Minute i and ii labels, and added a Micro wave 1 and 2 label at SPX 2064 and 2038. Micro wave 3 should be underway, or begin once Micro wave 2 has concluded. Short term support is at SPX 2030 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum declined after yesterday’s extremely overbought condition. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market