SHORT TERM: gap down opening, DOW -68
Overnight the Asian markets lost 0.3%. Europe opened lower and lost 0.9%. US index futures were lower overnight, and at 9am the FHFA was reported higher: +0.4% v +0.3%. The market gapped down at the open to SPX 2110, then tried to rally. The market had closed at SPX 2119 yesterday. At 10am Existing home sales were reported higher: 5.49mn v 5.35mn. By 10:30 the SPX had closed the gap when hitting 2119. After that it started to drift lower. After a decline to SPX 2111 by 12:30, a bounce to 2116 by 3pm, the market touched 2110 again at 3:30. Then a bounce into the close ended the day at SPX 2114.
For the day the SPX/DOW were -0.30%, and the NDX/NAZ were -0.90%. Bonds gained 3 ticks, Crude dropped $1.75, Gold slid $5, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: weekly Jobless claims at 8:30, and Leading indicators at 10am.
The market gapped down at the open following yesterday’s earnings reports on a few big name tech stocks. The market opened at SPX 2110, which was the low for the day, rallied to close the gap, then drifted down for the rest of the day. We continue to see four Minute waves off the SPX 2045 downtrend low: 2074-2051-2133-2110. After Minute wave iv bottoms, which is currently equal to Minute ii, the market should rally to a higher high to compete Minor wave 1. It is unlikely, however, the rally will take the market beyond the 2131 pivot range. As there is, and has been, significant resistance there for months. Short term support is now at SPX 2110 and SPX 2102, with resistance at the 2131 and 2198 pivots. Short term momentum was again quite oversold this morning, then ended the day nearly back to neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market