SHORT TERM: whipsaw wednesday, DOW -163
Overnight the Asian markets lost 0.9%. Europe opened lower and lost 1.9%. US index futures were lower overnight, and at 8:30 the CPI was reported higher: +0.1% v +0.3%. The market gapped down at the open to SPX 2085. The market had closed at SPX 2097 yesterday. By 10am the SPX had hit 2079 and tried to rally. The rally lasted for a few minutes, the SPX hit 2085, then declined to 2071 by noon. After that the market worked its way back to SPX 2085 when the FOMC minutes were released: http://www.federalreserve.gov/newsevents/press/monetary/20150819a.htm. After that the market rallied to SPX 2096, and then started heading back down. By 3pm the SPX had hit 2078. Another rally took the SPX to 2086 just before the 2080 close.
For the day the SPX/DOW were -0.90%, and the NDX/NAZ were -0.75%. Bonds gained 21 ticks, Crude lost $2.20, Gold rallied $14, and the USD was lower. Medium term support drops to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: weekly Jobless claims at 8:30. Then Existing home sales, Leading indicators and the Philly FED at 10am.
The market gapped down at the open for the second day this week. And just like Monday it tried to rally after hitting SPX 2079. Today, however, it only bounced and headed to SPX 2071 before rallying. After the FOMC minutes the rally hit SPX 2096. Then the market headed back down again. Quite a wild day. It looks like the decline from last Monday’s SPX 2105 high has resumed. After a drop to SPX 2052, then a choppy rally to SPX 2103, the market appears to be heading lower. Short term support drops to the 2070 pivot and SPX 2052, with resistance at the 2085 pivot and SPX 2114. Short term momentum was quite oversold during today’s initial decline then bounced. Best to your trading!
MEDIUM TERM: choppy trend continues
LONG TERM: bull market