SHORT TERM: market rebounds, DOW +139
Overnight Asian markets lost 1.1%. Europe opened lower as EQE started, and lost 0.5%. US index futures were higher overnight, and the market opened three points above Friday’s SPX 2071 close. In the opening minutes the SPX dipped to 2072 and then began to rally. Just before 2pm the SPX hit 2083, dipped to 2078, then hit 2083 again just after 3pm. The market then pulled back to SPX 2079 to end the day.
For the day the SPX/DOW were +0.60%, and the NDX/NAZ were +0.30%. Bonds gained 13 ticks, Crude added 35 cents, Gold ticked up $1, and the USD was lower. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: Wholesale inventories at 10am.
The market opened higher today, from Friday’s extremely oversold condition, and rallied to SPX 2083 before ending the day at 2079. This is the first notable rally since the recent decline began this past Thursday at SPX 2104. So far the Fibonacci support at SPX 2067, a 38.2% retracement, has held. Again, however, the market ran into resistance at another obvious level near the 2085 pivot. To continue this rally, and add support to a potential Minor 2 low, the market needs to rally beyond the OEW 2085 pivot range. Short term support is at the 2070 pivot and SPX 2051, with resistance at the 2085 pivot and SPX 2120. Short term momentum ended the day at neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market