SHORT TERM: consolidation day, DOW -7
Overnight the Asian markets lost 0.2%. Europe opened lower and lost 0.2% as well. US index futures were lower overnight, and the market opened four points below yesterday’s SPX 2069 close. In the opening minutes the SPX dipped to 2064, then bounced to 2069 by 10am. After dip to SPX 2063 by 10:30 the market hit 2070 by 11am, before heading lower again. Around 1pm the SPX hit 2058 and then started to rally. In the last hour of trading the SPX hit 2073, dipped to 2066, then ended at 2069.
For the day the SPX/DOW were -0.05%, and the NDX/NAZ were +0.35%. Bonds lost 3 ticks, Crude slid 65 cents, Gold dropped $14, 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 Retail sales at 8:30, with Business inventories at 10am.
The market opened lower today, went into a trading range until 11am. Took out the lows of the day around 1pm, then took out the highs for the day around 3:30. The net result was pretty much unchanged. With today’s pullback, and then rally, we can count five waves up from Monday’s SPX 2042 low: 2058-2049-2071-2058-2073. While we continue to expect all time new highs soon. We still need to keep an eye on at that SPX 2042 level. Short term support is now at SPX 2058 and SPX 2049, with resistance at the 2070 and 2085 pivots. Short term momentum declined to neutral during today’s pullback, then ended just under overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market