SHORT TERM: gap down opening, DOW -280
Overnight the Asian markets lost 0.9%. Europe opened lower and lost 1.7%. US index futures were lower overnight, and at 8:30 the CPI was reported higher: +0.2% v +0.2%. The market gapped down at the open for the first time since a week ago Monday. It opened at SPX 2092, 13 points below yesterday’s close, and decline to 2080 by 10am. At 10am Consumer sentiment was reported higher: 95.9 v 93.0, and Leading indicators were reported higher: +0.2% v +0.1%. The market bounced to SPX 2087 by 10:30, hit 2079 by 11am, bounced to 2085 by 1:30, then headed even lower. Around 2:30 the market hit its low for the day at SPX 2072. Then it rallied to SPX 2084 before closing at 2081.
For the day the SPX/DOW were -1.35%, and the NDX/NAZ were -1.50%. Bonds lost 1 tick, Crude slipped 40 cents, Gold added $6, and the USD was lower. Medium term support drops to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Last night the Monetary base was reported higher: $4.167tn v $4.064tn. Today the WLEI was reported higher: 48.6% v 48.0%.
The market gapped down at the open today, then hit SPX 2072, for a 40 point decline from Wednesday’s gap up opening high. This two day decline nearly matched the 41 point two day decline after the last gap up opening on March 30th. Fractals? It appears the market has turned down for the third time after hitting the SPX 2100, NAZ 5000, and DOW 18000 combo. Overhead resistance indeed. Another down day like today and the market will be reaching initial support in the SPX 2040’s. Short term support is at the 2070 pivot and SPX 2057, with resistance at the 2085 pivot and SPX 2112. Short term momentum remained quite oversold for most of the day, then rose some in late trading. Best to your weekend!
MEDIUM TERM: uptrend again under pressure
LONG TERM: bull market