SHORT TERM: gap up opening choppy day, DOW +30
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.1%. US index futures were higher overnight. At 8:30 Personal income was reported higher: +0.4% v +0.0%, Personal spending was reported unchanged: +0.0% v +0.4%, and PCE prices were reported higher: +0.1% v +0.1%. The market gapped up at the open to SPX 2116 and immediately began to pullback. Also at the open FED vice chair Fischer’s speech: http://www.federalreserve.gov/newsevents/speech/fischer20150601a.htm. The market had closed at SPX 2107 on Friday. In the opening minutes the SPX hit 2106, then bounced back to 2113 by 10am. At 10am ISM manufacturing was reported higher: 52.8 v 51.5, and Construction spending was reported higher: +2.2% v -0.6%. The market then pulled back to the low of the day at SPX 2103 by 10:30. Then after a rally to SPX 2112 by 11am, a pullback to 2107 by 11:30, the market moved higher. At 2:30 the SPX hit its high for the day at 2119, then pulled back to close at 2112.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.25%. Bonds lost 23 ticks, Crude ended flat, Gold slipped $1, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Factory orders, Auto sales, and a speech from FED governor Brainard at 10am.
The market gapped up at the open today, sold off turning negative on the day, then turned higher in the afternoon. The market continues to do what it has been doing for a few months: remaining in a trading range and remaining a day traders market. We are still counting a small ‘a’ down from SPX 2135 to 2099, then a small ‘b’ up to 2126. Still feel a ‘c’ wave lower is underway, despite the choppy action today. Short term support remains at SPX 2096/2099 and the 2085 pivot, with resistance at SPX 2117/2122 and the 2131 pivot. Short term momentum put in a positive divergence at today’s low, rose to overbought, then finished the day at neutral. Best to your trading!
MEDIUM TERM: uptrend may be rolling over
LONG TERM: bull market