SHORT TERM: gap down opening, DOW -85
Overnight the Asian markets lost 0.1%. Europe opened higher but lost 0.9%. US index futures were lower overnight, and the market gapped down at the open to SPX 2111. The SPX had closed at 2117 yesterday. The market continued to decline until the SPX hit 2098 around 12:30. Then it started to rally. The rally lasted most of the afternoon as the SPX made it back to 2109 by 2:30, then dipped to close at 2108.
For the day the SPX/DOW were -0.45%, and the NDX/NAZ were -0.55%. Bonds lost 9 ticks, Crude gained 75 cents, Gold slipped $2, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: the ADP at 8:15, ISM services at 10am, then the FED’s Beige book at 2pm.
The market gapped down at the open today for the first gap opening in well over a week. As the market continued to decline throughout the morning it wiped out all of yesterday’s gains, last week’s trading range, and hit SPX 2098. As a result it appears Minute v may have failed at yesterday’s SPX 2118 high, completing Minor 3, and Minor 4 is underway now. There are, however, two other potential counts which were noted in the weekend report. For now, we will remain with the one posted on the SPX hourly chart, which suggests Minor 4 support around the 2085 pivot range. Short term support is at SPX 2098 and the 2085 pivot, with resistance at SPX 2120 and the 2131 pivot. Short term momentum hit oversold today before bouncing to neutral. Best to your trading tomorrow’s ADP and Beige book!
MEDIUM TERM: uptrend
LONG TERM: bull market