SHORT TERM: correction continues, DOW -83
Overnight the Asian markets lost 0.3%. Europe opened lower and lost 0.9%. US index futures were lower overnight, and the market opened four points below Friday’s SPX 2093 close. The market bounced around a few points in the opening minutes, then started a gradual decline to SPX 2079 by 1:30. After a bounce to SPX 2087 just before 3pm, the market headed back down to end the day at the low 2079.
For the day the SPX/DOW were -0.55%, and the NDX/NAZ were -0.95%. Bonds gained 7 ticks, Crude dropped 80 cents, Gold added $3, and the USD was lower. Medium term support drops to the 2070 and 2019 pivots, with resistance now at the 2085 and 2131 pivots. Tomorrow: Wholesales inventories at 10am.
The market opened to the downside to start the week. Heading into the afternoon the SPX hit 2079, its lowest level since early May. Then after a bounce to SPX 2087 the market ended the day at 2079. We can now count five waves down from Minor b at SPX 2122: 2102-2113-2086-2101-2079. This may be the completion of Minute a, or the market will need to enter the 2070 pivot range, and set up a positive divergence to end Minute a. Then after a Minute b wave rally, Minute c should end the correction. With the SPX/DOW both in confirmed downtrends this correction could very well end this week. Short term support is at the 2070 pivot and SPX 2058, with resistance at the 2085 pivot and SPX 2099. Short term momentum ended the day oversold, after hitting extremely oversold earlier. Best to your downtrend trading!
MEDIUM TERM: downtrend underway
LONG TERM: bull market