SHORT TERM: gap down opening then choppy day, DOW +7
Overnight the Asian markets gained 0.7%. Europe opened lower and finished mixed. US index futures were lower overnight, and at 8:15 the ADP index was reported lower: 213k v 241k. The market gapped down at the open to SPX 2042, then bounced around a bit. The SPX had closed at 2050 yesterday. At 10am ISM services was reported higher: 56.7 v 56.2. The market hit SPX 2039 by 10:30 then tried to rally. At 11:30 the SPX hit a new high for the rally at 2052, then pulled back to 2042 by 12:30. After that the market bounced to SPX 2049 by 2pm, pulled back to 2042 again by 2:30, then tried to move higher. Heading into the last hour the SPX hit 2055, then sold off quickly to 2037 on an ECB Greek bank ruling, before bouncing into a 2042 close.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.20%. Bonds gained 1 tick, Crude dropped $4.15, Gold rose $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 and the Trade deficit at 8:30.
The market gapped down at the open, moving February’s gap opening streak to 3 for 3. After declining to SPX 2039 the market made several more waves on the way higher: 2052-2042-2055. This gives us an impulsive 9 waves up from Monday’s SPX 1981 low. However, the last several waves could have formed a small 5th wave diagonal triangle: 2050-2039-2052-2042-2055. This suggested the market could experience its largest pullback, since the rally began, next. And, the market started to decline in the last hour of trading. Short term support remains at SPX 2028 and the 2019 pivot, with resistance at SPX 2057/58 and the 2070 pivot. Short term momentum continued to display a negative divergence at todays highs, and ended the day at neutral. Best to your trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: bull market