SHORT TERM: pullback resumes, DOW -121
Overnight the Asian markets lost 0.1%. Europe opened lower and lost 0.2%. US index futures were relatively flat overnight, and at 8:30 weekly Jobless claims were reported higher: 270k v 267k. The market opened three points above yesterday’s SPX 2100 close, then immediately started to pullback. At 10am the SPX hit 2090, bounced to 2095 just past 10am, then headed lower. At 12:30 the SPX hit 2076, and then tried to rally. Heading into the close the SPX hit 2086, then closed at 2084.
For the day the SPX/DOW were -0.70%, and the NDX/NAZ were -1.60%. Bonds gained 11 ticks, Crude slid 40 cents, Gold rose $5, and the USD was lower. Medium term support drops to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: monthly Payrolls (est. +232k) at 8:30, then Consumer credit at 3pm.
The market opened slightly higher today, then pulled back to the lower SPX 2090’s, bounced around, and then headed to the lowest level for the week at 2076. After that the market rebounded into the SPX mid-2080’s area in the afternoon. We now have three waves down from the Minute wave B high at SPX 2114: 2087-2113-2076 so far. A further decline to SPX 2045 would set up the Minute C = Minute A relationship we have been tracking. Short term support is now at the 2070 pivot and SPX 2045, with resistance at the 2085 pivot and SPX 2114. Short term momentum was quite oversold at the low and then bounced. Best to your NFP trading tomorrow!
MEDIUM TERM: choppy uptrend weakening again
LONG TERM: bull market