SHORT TERM: gap down opening, DOW -141
Overnight the Asian markets gained 1.1%. Europe opened higher and gained 1.5%. US index futures were flat to lower overnight, and the market gapped down to SPX 2058 at the open. The market had closed at SPX 2063 yesterday. By 10am the SPX dipped to 2055 when Existing home sales were reported higher: 5.04mn v 4.93mn, and Leading indicators were reported higher: +0.5% v +0.6%. The market quickly rallied to SPX 2063, then dropped to 2053 by 10:30. After a rally to SPX 2063 by 2pm the market declined to 2051 just before a 2052 close.
For the day the SPX/DOW were -0.65%, and the NDX/NAZ were +0.15%. Bonds gained 21 ticks, Crude dropped 85 cents, Gold slid $10, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Last night the FED reported an increase in the Monetary base: $4.139tn v $3.941tn. Today the WLEI was reported flat at 45%.
After yesterday’s volatile rally the market entered a pullback period today. Despite the gap down opening the total range from yesterday’s high to today’s low was only 14 points. Quite normal, considering the volatility this month. The count for Minute iii remains the same: Micro 1 2029, Micro 2 2004, and Micro 3 2065 thus far. More on the wave structure and the ECB’s EQE during the weekend. Best to your weekend!
MEDIUM TERM: uptrend trying to extend
LONG TERM: bull market