SHORT TERM: Greek No-vote creates gap down opening, DOW -47
Overnight US index futures gapped down about 30 points to start trading, dipped lower, and then started to recover just like last Sunday night. Asian markets opened lower and lost 1.9%. European markets opened lower and lost 1.7%. The US market opened at SPX 2062, dipped to 2058, and then started to rally. The SPX had closed at 2077 on Thursday. At 10am ISM services was reported higher: 56.0 v 55.7. The rally continued until about 10:30 when the SPX completely closed the gap down and hit 2079. After that the market started to pullback. The pullback took the SPX back to 2060. Then a rally into the close ended the day at SPX 2069.
For the day the SPX/DOW were -0.30%, and the NDX/NAZ were -0.35%. Bonds gained 24 ticks, Crude plunged $4.10, Gold added $3, and the USD was higher. Medium term support drops back to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Consumer credit at 3pm.
The market gapped down at the open today for the fifth consecutive gap opening in the past five trading days. Then after coming within 2 points of last week’s SPX 2056 low the market rallied to 2079 closing the opening gap. After that the market headed down to SPX 2060, then bounced higher for the rest of the day. From the recent Minor wave B high at SPX 2130, Minor C has been subdividing into three Minute waves. Minute A was a seven wave zigzag to SPX 2056. Minute B did end right at the SPX 2085 pivot on Thursday. Minute wave C began right after the open Thursday morning. Thus far from SPX 2085 we have: 2056-2079-2060-2069 The decline to SPX 2056 can be counted as a small a, the rally to 2079 as a small b, and now possibly a 5 wave small c is underway. This suggests we could see a downtrend low quite soon. We continue to target the low SPX 2040’s or the 2019 pivot. Short term support is at SPX 2056 and SPX 2040, with resistance at the 2070 and 2085 pivots. Short term momentum ended the day at neutral. Best to your trading this volatile market!
MEDIUM TERM: downtrend
LONG TERM: bull market