SHORT TERM: gap up opening retraced, DOW -76
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.2%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 271k v 267k, the PCE was reported higher: +0.1% v +0.1%, and Personal income (+0.5% v +0.4%)/ spending (+0.9% v 0.0%) was reported higher. The market gapped up at the open to SPX 2115, then immediately began to pullback. The market had closed at SPX 2109 yesterday. Also at 9:30 FED governor Powell’s speech was released: http://www.federalreserve.gov/newsevents/speech/powell20150625a.htm. After a pullback to SPX 2108 in the opening minutes the market rallied to 2116 just past 11am. Then the market started to pullback again. At 2:30 the SPX hit 2102, then tried to rally. By 3pm the SPX hit 2107, but pulled back to close at 2102.
For the day the SPX/DOW were -0.35%, and the NDX/NAZ were -0.20%. Bonds lost 8 ticks, Crude slid 65 cents, Gold dipped $1, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Consumer sentiment at 10am.
The market gapped up at the open for the second time this week, but immediately reversed the rally and closed the gap. Then after a rally back near the opening level the market declined to SPX 2102. This is the third straight day of a lower daily high/low since Monday’s SPX 2130 high. Also with today’s decline below SPX 2104 the entire rally from SPX 2072 is starting to look sloppy. This may still be a new uptrend, but the hourly pattern is now out of sync with lesser timeframes. Short term support remains at the 2085 and 2070 pivots, with resistance at SPX 2109 and the 2131 pivots. Short term momentum is now displaying a positive divergence at today’s lows. Best to your trading!
MEDIUM TERM: potential uptrend getting sloppy
LONG TERM: bull market