SHORT TERM: gap up opening faded, DOW -28
Overnight the Asian markets gained 0.3%. Europe opened higher but lost 0.5%. US index futures were higher overnight. At 8:30 monthly Payrolls were reported lower: 213k v 280k, the Unemployment rate was reported lower: 5.3% v 5.5%, and weekly Jobless claims were higher: 281k v 271k. The market gapped up at the open to SPX 2084, ticked up to 2085, then started to pullback. The SPX had closed at 2077 yesterday. At 10am Factory orders were reported lower: -1.0% v -0.4%. The market continued to decline into the afternoon, with only 2-3 point bounces along the way. Around 2pm the SPX hit 2071, and then tried to rally. The rally carried to SPX 2079 in the closing minutes, just before a 2077 close.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ were mixed. Bonds gained 14 ticked, Crude slipped 45 cents, Gold dipped $2, and the USD was lower. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow is a national holiday.
The market gapped up at the open for the third day in a row today. And just like the previous two gap up openings, the market was immediately sold off after the first few minutes to half hour of trading. At the open the SPX hit a slightly higher high for the rally from Tuesday’s SPX 2056 low at 2085. Now we have five overlapping waves up from that low suggesting, as we have thought, this is a B wave rally. As noted yesterday, this rally could bounce around a bit before resuming the downtrend. Quiet day. Short term support remains at the 2070 pivot and SPX 2056, with resistance at the 2085 and 2131 pivots. Short term momentum hit overbought this morning before heading lower. Best to your three day holiday!
MEDIUM TERM: downtrend
LONG TERM: bull market