SHORT TERM: market pulls back, DOW -101
Overnight the Asian markets gained 0.6%. Europe opened higher but finished mixed. US index futures were higher overnight, but turned lower before the open. The market opened at SPX 2119 and began to drift lower. The SPX had closed at 2121 yesterday. With only 3-4 point bounces the market drifted lower most of the day. Heading into the close the market hit SPX 2109, then closed at 2110.
For the day the SPX/DOW were -0.55%, and the NDX/NAZ were -0.35%. Bonds gained 24 ticks, Crude lost $1.05, Gold slipped $2, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Today the WLEI was reported higher: 51.0% v 50.8%.
The market opened slightly lower today, and drifted lower throughout the day following yesterday’s big rally. We had noted yesterday a potential impulse wave if the market rose above SPX 2127. That did not occur. Also, the market has yet to overlap the first wave of the recent rally from SPX 2072: 2104-2089-2127-2109 so far. So it closes out the week in between a potential impulse wave, and a resumption of corrective action. Short term support drops down to SPX 2099 and the 2085 pivot, with resistance now at SPX 2118 and the 2131 pivot. Short term momentum decline after yesterday’s slight negative divergence, ending the week oversold. Best to your weekend!
MEDIUM TERM: downtrend trying to impulse higher
LONG TERM: bull market