SHORT TERM: consolidation day, DOW -24
Overnight the Asian markets finished mixed. Europe opened higher and gained 0.5%. US index futures were lower overnight, and the market opened four points below Friday’s SPX 2110 close. By 10am the SPX had hit 2103 and then tried to rally. Also at 10am Existing home sales were reported lower: 4.82mn v 5.04mn. Around 1:30 the SPX hit 2109 and then started to pullback. At 3pm the SPX hit 2103 again, and then rallied to finish the day unchanged at 2110.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ were +0.10%. Bonds gained 19 ticks, Crude dropped $1.60, Gold added $2, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Case-Shiller at 9am, then Consumer confidence and FED chair Yellen testifies before the Senate at 10am.
The market opened 4 points lower today. Then spent the rest of the day between +3 and -3 points of the opening level until the close. Clearly a consolidation day after Friday’s big rally. While many awaited the Greek gov’t submitting its letter to the EU today. The submission was put off until tomorrow as details were discussed with EU members. Friday’s optimism was clearly subdued today. Today’s narrow trading range did nothing to alter the count(s) posted over the weekend. Starting tomorrow FED chair Yellen reports the state of the economy and monetary policy to Congress. These reports are always interesting. Short term support remains at the 2085 and 2070 pivots, with resistance at SPX 2111 and the 2131 pivot. Short term momentum declined during the day and ended above just neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market