SHORT TERM: gap down opening, DOW -108
Overnight the Asian markets lost 0.3%. Europe opened lower and lost 1.6%. US index futures were lower overnight as well. At 8:30 the NY FED was reported lower: -2.0 v +3.1, and at 9:15 Industrial production was reported lower: -0.2% v -0.3%. The market gapped down at the open to SPX 2077, and continued to 2072 before rebounding. The market had closed at SPX 2094 on Friday. After the low the market rallied to SPX 2087 by just past 11am. Then after a pullback to SPX 2081 by 11:30, the market bounced back to 2088 just before 2pm. A pullback to SPX 2082 followed by 3pm, then the market bounced to close at 2084.
For the day the SPX/DOW lost 0.50%, and the NDX/NAZ lost 0.45%. Bonds gained 9 ticks, Crude lost 30 cents, Gold rose $5, 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: Housing starts and Building permits at 8:30, and the FED starts its FOMC.
The market gapped down at the open today, sold off to the 2070 pivot (2072), then rallied to the 2085 pivot (2088), before ending the session at 2084. Today’s decline was a continuation of the decline that started last Thursday at SPX 2115. It is interesting that the market sold off until it hit last week’s SPX 2072 low, and then rallied. Another temporary double bottom? Since today’s SPX 2072 low was followed by a notable reversal to 2088, we will count the low as wave 1, and the rebound as wave 2, of Minute c. When the SPX 2072 support is broken to the downside, wave 3 should be underway. Short term support is at the 2070 pivot and SPX 2058, with resistance at the 2085 pivot and SPX 2099. Short term momentum rebounded to just below neutral from quite overbought this morning. Best to your Tuesday trading!
MEDIUM TERM: downtrend
LONG TERM: bull market