SHORT TERM: market drifts lower, DOW -34
Overnight the Asian markets lost 0.6%. Europe opened lower and lost 0.3%. US index futures were lower overnight. At 8:30 Building permits were reported lower: 1119k v 1343k, and Housing starts higher: 1206k v 1174k. The market opened four points below yesterday’s SPX 2102 close, dipped down to 2097, then rose to yesterday’s 2103 high by 11am. After that the market started to pullback. At 3pm the SPX hit 2094, then bounced into a 2097 close.
For the day the SPX/DOW were -0.20%, and the NDX/NAZ were -0.60%. Bonds lost 11 ticks, Crude added 45 cents, Gold was flat, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: the CPI at 8:30, then the FOMC minutes at 2pm.
The market opened slightly lower today, bounced to yesterday’s high, then made the low for the day around SPX 2094. A nine point trading range for the entire day. We still see three choppy waves up from the recent SPX 2052 low: 2093-2079-2103. Short term overhead resistance remains at: 2105-2113-2114. With the FOMC minutes tomorrow the market is likely to experience some rate related volatility. Short term support remains at the 2085 and 2070 pivots, with resistance at SPX 2114 and the 2131 pivot. Short term momentum traded around neutral today and ended there. Best to your trading!
MEDIUM TERM: choppy uptrend continues
LONG TERM: bull market