SHORT TERM: pullback continues, DOW -105
Overnight the Asian markets lost 0.2%. European markets opened lower bit gained 0.5%. US index futures were higher overnight. At 8:30 the CPI was reported higher: +0.2% v -0.7%, then at 9am FHFA housing prices were reported higher: +0.3% v +0.8%. The market opened one point below yesterday’s SPX 2104 close, then hit 2099 in the opening minutes. At 10am New home sales were reported at a seven year high: 539k v 481k. The market rallied to SPX 2108 by 11:30, but then pulled back again. At 2:30 the SPX hit 2094, bounced to 2099 just past 3pm, then closed at 2092.
For the day the SPX/DOW were -0.60%, and the NDX/NAZ were -0.30%. Bonds gained 9 ticks, Crude was flat, Gold added $2, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Durable goods orders at 8:30.
The market opened slightly lower today, dipped below SPX 2100, rallied to 2108, then made a lower low at 2092. During the second decline the market triggered a Micro wave 4 underway, and we updated the hourly chart accordingly. The pullback from SPX 2115 looks like another abc (2099-2108-2092). Each of the previous three pullbacks during this rally have been between 21 and 25 points. This one is 23 points thus far. Today also marked the fifth consecutive week that the market has failed to rally two days in a row. This is quite odd considering the market has been in an uptrend since early February. And, it is probably the reason the market has not made much upside progress. Five week ago the SPX closed at 2100. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2107 and SPX 2115. Short term momentum ended the day quite oversold. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market