SHORT TERM: gap down opening, DOW -128
Overnight the Asian markets gained 0.6%. Europe opened lower and lost 0.5%. US index futures were lower overnight. At 8:30 Building permits were reported higher: 1090k v 1053k, but Housing starts were reported lower: 897k v 1065k. The market gapped down at the open to SPX 2072, found support at 2068 and tried to rally. By 10:30 the market had only bounced to SPX 2073, then headed lower. After hitting 2065 by 11:30 the market then started to rally. By 2pm the SPX hit 2077, pulled back to 2072 just before 3pm, then rallied to 2079, just before a 2074 close.
For the day the SPX/DOW were -0.50%, and the NDX/NAZ were +0.15%. Bonds gained 10 ticks, Crude lost 75 cents, Gold slid $6, and the USD was lower. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: the FED concludes its FOMC meeting with a press conference.
The market gapped down at the opening for the second time in a row after a 20+ point rally. Today’s opening was the fourth gap opening in a row: two up, two down. By 11:30 the SPX hit 2065 and then rallied to 2079 in the last hour of trading. It looks like the market has done a 1-2, 1-2 up from SPX 2040 (2066-2041-2081-2065—). Expecting volatility after the FMOC statement, then during the press conference. Should be another wild day. Short term support is at the 2070 pivot and SPX 2051, with resistance at the 2085 pivot and SPX 2104. Short term momentum dropped during today’s pullback, then turned higher. Best to your FOMC trading!
MEDIUM TERM: uptrend
LONG TERM: bull market