SHORT TERM: pullback Friday, DOW -115
Overnight the Asian markets gained 0.5%. Europe opened lower and lost 1.9%. US index futures were lower overnight, and at 8:30 Q1 GDP was revised lower: -0.7% v +0.2%. The market opened one point below yesterday’s SPX 2121 close, and continued lower. At 9:45 the Chicago PMI was reported in contraction mode: 46.2 v 52.3, then at 10am Consumer sentiment was reported higher: 90.7 v 88.6. The market declined to SPX 2105 just before 11am, bounced to 2110 just after 11am, then hit 2105 again at 11:30. Then it started to rally. The rally lasted until 1:30 when the SPX hit 2117. Then after a pullback to SPX 2106 by 3pm, the market bounced to 2113 by 3:30, then declined to 2107 to end the week.
For the day the SPX/DOW were -0.60%, and the NDX/NAZ were -0.60%. Bonds gained 4 ticks, Crude rallied $2.55, Gold added $1, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Today the WLEI was reported lower: 51.4% v 51.5%.
The market opened lower today, dropped to SPX 2105, rallied to 2117, then ended the week at 2107. Despite the continued choppy activity this market has actually been moving lower since last Wednesday’s SPX 2135 high. The pattern down looks like a small a-b-c to SPX 2099, a rally to 2126, then a series of small waves down to 2105 thus far. The Intermediate wave one leading diagonal uptrend is still the preferred count. With a potential Intermediate wave two downtrend just getting underway. Will do a full review of the charts this weekend. Best to you and yours !
MEDIUM TERM: still an uptrend
LONG TERM: bull market