SHORT TERM: selling continues, DOW -163
Overnight the Asian markets lost 0.9%. Europe opened lower and lost 1.0%. US index futures were higher overnight, and the SPX opened at 2106. Right after that spike high opening, again not support by the futures market, the market started to pullback. In the opening minutes the SPX hit 2098, then bounced to 2103 by 10am. At 10am New home sales were reported lower: 482k v 546k. The market then headed lower, into the afternoon, with only 3 and 4 point bounces, until it hit 2077 by 3pm. Then the market bounced into the close to end the week at SPX 2080.
For the day the SPX/DOW were -1.00%, and the NDX/NAZ were -1.05%. Bonds gained 6 ticks, Crude slid 25 cents, Gold rose $10, and the USD was higher. Medium term support drops to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Today the WLEI was reported lower: 50.3% v 50.6%.
The market opened slightly higher today, but by 10am it started heading lower yet again. After eight days of higher highs/lows, we have now had four straight days of lower highs/lows. The selling this week has been quite steady since the uptrend high was made on Monday at SPX 2133. There has been only one notable reversal (2110-2119) during this 56 point decline (2133-2077). The uptrend displays only three waves: 2074-2051-2133, and the market is close to overlapping the first. The DOW, btw, has already done so and is close to retracing its entire rally. Despite the new bull market highs in the NDX/NAZ the general market is starting to display deterioration. More on this in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend under pressure
LONG TERM: bull market