SHORT TERM: gap up opening faded, DOW -85
Overnight the Asian markets gained 1.1%. European markets opened higher and gained 0.2%. US index futures were higher overnight. The market gapped up to the high of the day at SPX 2110 at the open, and then began to pullback. At 10:30 the market dropped below yesterday’s close when hitting SPX 2098. It then bounced to SPX 2103 by 11am before heading lower again. Around 2pm the SPX hit 2094, bounced to 2100 by 2:30, then dipped to 2097 to end the day.
For the day the SPX/DOW were -0.30%, and the NDX/NAZ were +0.40%. Bonds lost 5 ticks, Crude dropped $1.30, Gold rallied $6, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: the FHFA index at 9am, then Existing home sales at 10am.
The market gapped up at the open, hit SPX 2110, and then started to pullback. This morning’s gap up, for the second day in a row, broke the recent gap up then sell off pattern that had occurred a few times over the past month. In fact, this is the first time the market has gapped up two days in a row since the beginning of February – when the uptrend began. Not sure what to make of that factoid in this choppy market. For now the trend is up, and we continue to look for the last leg down of this pullback/correction. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2112/2115 and SPX 2120. Short term momentum hit overbought at the open, setup a negative divergence, then declined to neutral. Best to your trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market