SHORT TERM: gap down then rebound, DOW -37
Overnight the Asian markets lost 1.2%. Europe opened lower and lost 1.4%. US index futures were lower overnight then started to rebound heading into the open. The market gapped down to SPX 2094 at the open, then dropped to 2086 before starting to recover. The SPX had closed at 2105 yesterday. After the low the market rallied back to SPX 2101 by 11am, dipped to 2095 just past noon, then headed higher again. At 2pm the Budget surplus was reported higher: $157.bn v $106.9bn. At 2:30 the SPX hit 2105, then pulled back to close at 2099.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were -0.35%. Bonds gained 5 ticks, Crude rallied $1.25, Gold rose $9, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Retail sales and Export/Import prices at 8:30, then Business inventories at 10am.
The market gapped down at the open today, traded down to the 2085 pivot, then reversed back up to close the gap at 2105, before ending the day at 2099. Despite the rally, today was the second negative close in a row. Yesterday the market closed at the low of the day. Today it closed under SPX 2100. While the market can still challenge the OEW 2131 pivot to complete the diagonal. It could just as easily head lower from here as well. The choppy market continues. Short term support remains at the 2085 and 2070 pivots, with resistance at SPX 2120 and the 2131 pivot. Short term momentum nearly made it back to neutral after today’s extreme oversold reading. Best to your trading this day traders market!
MEDIUM TERM: still an uptrend
LONG TERM: bull market