SHORT TERM: fourth gap down opening this week, DOW -531
Overnight the Asian markets lost 1.8%. Europe opened lower and lost 2.7%. US index futures were lower overnight as well, and the market gapped down at the open to SPX 2016. After a dip to SPX 2013, still holding the 2019 pivot range, the market rallied to 2025 just past 10am. After that the 2019 pivot was broken as the SPX dropped to 1993 by 11:30. Then after a rally to SPX 2009 just past noon, the market made another low at 1990 at 1pm. A rally to SPX 2005 followed, but the next decline entered the 1973 pivot range by 3pm. Then after several bounces the market closed at SPX 1971.
For the day the SPX/DOW were -3.15%, and the NDX/NAZ were -3.90%. Bonds gained 13 ticks, Crude lost $1.00, Gold added $6, and the USD was lower. Today the WLEI was reported lower: 49.6% v 50.1%. Medium term support drops to the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots.
The market opened with another gap down. At the open it held the 2019 pivot range, but after an hour of trading that support gave way. The market then continued lower until it hit the next support at the 1973 pivot range in the last hour of trading. Quite a selloff today after the six month support level around SPX 2040 broke at the close yesterday. Looks like Primary IV is underway, unless the market can rally strongly next week. Short term support is at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Short term momentum hit extremely oversold today, and closed there. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bull market