SHORT TERM: early rally fades, DOW -81
Overnight the Asian markets gained 1.1%. Europe opened lower, but gained 0.2%. US index futures were lower overnight until just before the open. The market opened at SPX 2103, one point above Friday’s close. During the first hour of trading the market reached SPX 2108 and then started to pullback. The pullback continued into the afternoon, with only two to three point bounces along the way. At 3:30 the SPX hit 2093, bounced, and then closed at 2092.
For the day the SPX/DOW were -0.45%, and the NDX/NAZ were -0.20%. Bonds gained 8 ticks, Crude added 30 cents, Gold slid $8, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Retail sales and the PPI at 8:30, then Business inventories at 10am.
The market opened higher today, hit SPX 2108, and then started to pullback. While this entire rally still continues to look corrective, we added an impulsive possibility over the weekend. To keep the impulse possibility alive this pullback needs to remain above 2088, and then rally to 2108 or higher in the coming days. Other than that it will remain corrective in appearance, with possibly SPX 2108 the high for this rally from 2048. Short term support is at the 2085 and 2070 pivots, with resistance now at SPX 2108 and SPX 2115. Short term momentum peaked at extremely overbought today then hit oversold. Best to your trading this day traders market!
MEDIUM TERM: still an uptrend
LONG TERM: bull market