SHORT TERM: turnaround Tuesday, DOW -212
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 1.9%. US index futures were lower overnight, and the market gapped down at the open to SPX 2091. The market had closed at SPX 2104 yesterday. By 10am the SPX had traded down to 2087 when Wholesale inventories were reported higher: +0.9% v +0.8%. The market then bounced to SPX 2093 by 10:30 before heading even lower. At noon the SPX hit 2079, bounced to 2084 by 12:30, then hit its low for the day at 2076 by 1:30. After that the market worked its way higher. Heading into the close the SPX hit 2086, then dipped to close at 2084.
For the day the SPX/DOW were -1.10%, and the NDX/NAZ were -1.25%. Bonds gained 27 ticks, Crude dropped $1.50, Gold added $5, and the USD was higher. Medium term support drops to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: the Treasury deficit at 2pm.
The market gapped down at the open today, and by early afternoon had retraced all of yesterday’s gap up opening gains. The market continues to remain choppy, as it has been for most of the year. We continue to believe SPX 2133 ended a corrective uptrend, and the market has recently been in a downtrend with support in the SPX low 2040’s. The wave pattern posted on the SPX charts displays a completed Minute A and B, with a Minute C underway from SPX 2114. Minute C has been choppy as well. Once a downtrend is confirmed we will start looking for its low. Where ever that low occurs should end this choppy pattern and the bull market should then resume. Short term support is at the 2070 pivot and SPX 2040’s, with resistance at SPX 2114 and the 2131 pivot. Short term momentum was quite oversold today at the lows, then bounced in the afternoon. Best to your trading!
MEDIUM TERM: choppy uptrend again under pressure
LONG TERM: bull market