SHORT TERM: gap down opening pullback, DOW -178
Overnight the Asian markets gained 0.1%. Europe opened higher but lost 0.2%. US index futures were lower overnight, and at 8:30 Q1 GDP was reported in line with expectations: -0.2% v -0.7%. The market gapped down to SPX 2119 at the open, then rallied to 2125 by 10:30. The market had closed at SPX 2124 yesterday. Also at 10:30 a speech from FED vice chair Fischer was released: http://www.federalreserve.gov/newsevents/speech/fischer20150624a.htm. The market then started to pullback. The decline continued until 2:30 when the SPX hit 2110. After a bounce to SPX 2114 by 3:30, the market closed at 2109.
For the day the SPX/DOW were -0.85%, and the NDX/NAZ were -0.65%. Bonds gained 8 ticks, Crude lost 75 cents, Gold slipped $3, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: weekly Jobless claims at 8:30, along with Personal income/spending and the PCE. Then at 9:45 a speech from FED governor Powell.
The market gapped down at the open today for the first time since the SPX 2072 low was established a week ago Monday. After a rally to close the gap the market headed lower continuing its pullback from Monday’s SPX 2130 high, hitting 2109 at the close. This pullback is now the largest since the rally began. While the recent rally does look impulsive, we would like to see the market remain above SPX 2104 over the next few days. If it drops below that level then we will have conflicting wave patterns from the hourly charts on down to the lesser timeframes. For now, the market found support right at the expected SPX 2109 level. Should be an interesting day tomorrow. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2109 and the 2131 pivot. Short term momentum ended the day quite oversold. Best to your trading!
MEDIUM TERM: uptrend likely underway
LONG TERM: bull market