SHORT TERM: pullback continues, DOW +60
Overnight the Asian markets lost 0.8%. Europe opened lower but finished mixed. US index futures were higher overnight, and the market opened three points above yesterday’s SPX 2102 close. In the opening minutes the market pulled back to SPX 2100, then rallied to 2108 by 10am. Also at 10am Consumer sentiment was reported higher: 96.1 v 94.6. The market then started to pullback. At 1:30 the SPX hit 2095, then tried to rally. Around 3pm the SPX hit 2104, then pulled back to close at 2102.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.65%. Bonds lost 18 ticks, Crude slipped 10 cents, Gold added $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: 51.2% v 51.0%.
The market opened a bit higher today, dropped to SPX 2100, rallied to 2108, then dropped to 2095 in the afternoon. After that the market had its first notable rally since the recent SPX 2130-2095 decline began. SPX 2095 is a near perfect 61.8% of the recent 2072-2130 rally. Monday should be interesting. Short term support is at SPX 2095 and the 2085 pivot, with resistance at SPX 2109 and the 2131 pivot. Short term momentum continues to display a positive divergence. Best to your weekend!
MEDIUM TERM: potential uptrend remains sloppy
LONG TERM: bull market