SHORT TERM: higher open then pullback, DOW -56
Overnight the Asian markets gained 0.7%. Europe opened higher and gained 0.5%. US index futures were lower overnight, but turned higher after the ECI was reported lower than expected. The market opened three points above yesterday’s SPX 2109 close, hit SPX 2114, then pulled back to 2106 all in the opening minutes. Then it started to drift higher. At 12:30 the SPX hit 2114 again, and started to pullback. Heading into the close the SPX hit 2102, then ended the week at 2104.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were -0.10%. Bonds gained 23 ticks, Crude lost $1.60, Gold added $7, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Today the WLEI was reported lower: 50.2% v 50.3%.
The market opened higher today, after the USD sold off and Bonds/Equities/Gold rallied following the ECI report before the open. After hitting SPX 2114 in the opening minutes, the market pulled back to 2106, then hit 2114 again in early afternoon before pulling back further heading into the close. A second choppy day during what appears to be continuing corrective market activity. More on this in the weekend update. Short term support is now at SPX 2095 and the 2085 pivot, with resistance at SPX 2114 and the 2131 pivot. Short term momentum displayed a negative divergence today before the market pulled back in the afternoon. Best to your weekend!
MEDIUM TERM: uptrend remains above SPX 2100
LONG TERM: bull market