SHORT TERM: gap down opening again, DOW -117
Overnight the Asian markets gained 0.2%. European markets opened lower bit gained 0.1%. US index futures were lower overnight, and at 8:30 weekly Jobless claims were reported higher: 291k v 289k. The market gapped down at the opened for the third day in a row. It opened at SPX 2094, dipped to 2090, and then tried to rally. The SPX had closed at 2100 yesterday. At 10am the Philly FED was reported lower: 5.0 v 5.2, Leading indicators were reported higher: +0.2% v +0.2%, and FED governor Tarullo’s senate testimony: http://www.federalreserve.gov/newsevents/testimony/tarullo20150319a.htm. By 10:30 the market had hit SPX 2097, and then started to pullback again. At 1pm the SPX hit 2086, and then tried to rally. The rally lasted to 3pm and hit SPX 2093, then the market pulled back to close at 2089.
For the day the SPX/DOW were -0.55%, and the NDX/NAZ were +0.15%. Bonds lost 11 ticks, Crude slid $1.05, Gold dipped a $1, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow is Options expiration Friday.
The market had its sixth straight gap opening today, four of them down, after yesterday afternoon’s spike up rally. In fact, since February 17th the SPX has not had two successive up days in a row. Day traders market. After yesterday’s SPX 2107 high the market has now pulled back a larger than expected 21 points. This pullback, thus far, looks similar to the last pullback (2081-2061) and the one before that (2066-2041). However, if the pullback continues lower, and drops below SPX 2081, the entire rally from 2040 will start to look choppy. This would then suggest it could have all been a B wave of an ongoing correction from SPX 2120. For now the Minor wave 3 impulsive structure remains. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2107 and SPX 2120. Short term momentum dropped to neutral during today’s pullback then turned higher. Best to your Opex trading!
MEDIUM TERM: uptrend
LONG TERM: bull market