SHORT TERM: turnaround Tuesday, DOW -180
Overnight the Asian markets gained 0.2%. Europe opened lower and lost 0.7%. US index futures were relatively flat overnight, and the market opened three points below yesterday’s SPX 2128 close. By 10am the market had bounced back to SPX 2128 and then started to pullback. Just past 10:30 the pullback dropped below SPX 2124, yesterday’s low, breaking the eight day streak of higher highs/lows. Then the pullback gained some momentum to the downside. Just past 2pm the SPX hit 2115. Then it worked its way higher to SPX 2121 just before a 2019 close.
For the day the SPX/DOW were -0.70%, and the NDX/NAZ were -0.15%. Bonds gained 10 ticks, Crude added 45 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: FHFA housing at 9am, then Existing home sales at 10am.
Over the weekend we posted the following; “… unless this third wave extends, early next week could be somewhat choppy as the market yet again deals with the OEW 2131 pivot.” Yesterday the market rose to SPX 2133 and then started to pullback in the last hour of trading. That pullback continued into today as the SPX hit 2115. The rally from the downtrend low at SPX 2045 now looks like four Minute waves: 2074-2051-2133-2115 so far. Once this pullback concludes we should see a rally up to, and probably above, SPX 2133 to complete Minor wave 1. Short term support is now at SPX 2115 and 2102, with resistance at the 2131 and 2198 pivots. Short term momentum was quite oversold during today’s pullback, then bounced a bit at the close. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market