SHORT TERM: another turnaround Tuesday, DOW +190
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.9%. US index futures were higher overnight, and at 9am Case-Shiller was reported flat: +4.9% v +4.9%. The market gapped up at the open to SPX 2078, but immediately began to pullback. At 10am Consumer confidence was reported lower: 90.9 v 101.4. Does anyone think consumer confidence dropped 10% in one month? At 10:30 the market hit SPX 2068 and then began to rally. With only 2 point pullbacks along the way, the SPX reached 2096 by 2:30. Then a dip into the close ended the day at SPX 2093.
For the day the SPX/DOW were +1.15%, and the NDX/NAZ were +0.95%. Bonds lost 7 ticks, Crude gained 30 cents, Gold added $1, and the USD was higher. Medium term support jumps to the 2085 and 2070 pivots, with resistance now at the 2131 and 2198 pivots. Tomorrow: Pending home sales at 10am, then the FOMC meeting concludes with a statement at 2pm.
The market gapped up at the open today, nearly retraced the entire gap, then rallied through the 2070 and 2085 pivots by the afternoon. After eight straight up days from the July low, the market dropped for five straight days. Today it reversed that decline by taking out yesterday’s SPX 2076 high at the open. We continue to count the 8 day rally(2045-2133) as a corrective three waves. And, the 5 day 69 point decline (2133-2064) was also three waves: 2110-2119-2064. Corrective activity continues. Two possible resistance levels for the current rally are (SPX 2099) 50% and (SPX 2107) 62% retracements. After that comes the 2131 pivot yet again. Short term support rises to the 2085 and 2070 pivots, with resistance at SPX 2099, SPX 2107 and the 2131 pivot. Short term momentum hit extremely overbought today. Best to your trading!
MEDIUM TERM: uptrend under pressure
LONG TERM: bull market