SHORT TERM: quiet morning then afternoon pullback, DOW -86
Overnight the Asian markets gained 1.1%. Europe opened lower but finished mixed. US index futures were relatively flat overnight, and the market opened three points below Friday’s SPX 2116 close. By 10am the SPX rallied back to Friday’s SPX 2118 high, then started to pullback. At 10:30 the SPX hit 2111, bounced to 2116 just past 11am, then headed lower again. Also at 10:30 the FED released their FOMC schedule for 2016: http://www.federalreserve.gov/newsevents/press/monetary/20150511a.htm. Around 3pm the SPX hit 2105, bounced to 2110 by 3:30, then dropped back to 2105 at the close.
For the day the SPX/DOW were -0.50%, and the NDX/NAZ were -0.35%. Bonds lost 29 ticks, Crude slipped 10 cents, Gold slid $4, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: a Budget surplus is expected to be reported at 2pm.
The market opened slightly lower today, bounced to Friday’s high, then dropped below Friday’s SPX 2106 low, ending the day at 2105. Despite the 13 point decline, the first pullback from SPX 2068, it was relatively quiet day. Not much new to report: long term indicators remain negative, the medium term chart pattern continues to look like a leading/ending diagonal triangle, and the market remains in its seven month trading range. Short term support remains at the 2085 and 2070 pivots, with resistance at the SPX 2120’s and the 2131 pivot. Short term momentum displayed a negative divergence at today’s high then declined to slightly oversold. Best to your trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market