SHORT TERM: gap down opening, DOW -146
Overnight the Asian markets finished mixed. Europe opened higher and gained 0.4%. US index futures were lower overnight, and at 8:30 the PPI was reported lower: -0.5% v -0.8%. The market gapped down at the open to SPX 2060, dipped to 2057, bounced to 2064, and then headed lower. At 10am Consumer sentiment was reported lower: 91.2 v 95.4. Just before noon the SPX hit 2041, nearly fully retracing yesterday’s rally. Then after a rally to SPX 2050 the market headed lower again. SPX 2041 was hit again around 2:30, then the market rallied to close at 2053.
For the day the SPX/DOW were -0.70%, and the NDX/NAZ were -0.45%. Bonds lost 6 ticks, Crude dropped $1.90, Gold added $2, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Today the WLEI was reported higher: 46.0% v 45.4%.
The market gapped down at the open today, after yesterday’s gap up opening, and came within one point of retracing yesterday’s 26 point rally. While we were expecting a pullback after yesterday’s SPX 2066 close. We did not expect the pullback to be a full retracement. Apparently Minor wave 2 is still trying to bottom out. More on this and an interesting intra-market relationship in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market