SHORT TERM: quiet trading session, DOW -5
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 1.6%. US index futures were higher overnight as well. The market opened three points above yesterday’s SPX 2081 close, rallied to 2089 in the opening minutes, then declined to 2081 by 10am. By 10:30 the market had rallied to SPX 2090, and then it gradually pulled back for the rest of the day. At 3pm Consumer credit was reported higher: $15.5bn v $11.6bn. In the last hour of trading the pullback strengthened and the SPX closed at 2076.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ were -0.15%. Bonds dipped 1 tick, Crude gained $1.60, Gold slipped $5, and the USD was higher. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: a speech from FED governor Powell at 8am, then the FOMC minutes at 2pm.
The market opened higher today, managed to reach SPX 2090, set up a negative short term divergence, and then began to pullback. With today’s slightly higher high than the late March SPX 2089, we have moved our Minute b label to 2090. Now the current corrective pattern looks even more similar to the December-February correction. The rally from the recent SPX 2048 low still looks corrective: 2063-2054-2072-2057-2090. Time for the last leg down, with FOMC minute volatility tomorrow? Short term support is at the 2070 pivot and SPX 2046/48, with resistance at the 2085 pivot and SPX 2115. Short term momentum displayed a negative divergence at today’s high. Best to your trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market