SHORT TERM: gap up opening retraced, DOW -239
Overnight the Asian markets gained 4.5%. Europe opened higher and gained 1.3%. US index futures were higher overnight, and the market gapped up to SPX 1985 at the open. The SPX had closed at 1969 yesterday. In the opening minutes the SPX hit 1989, the high for the day, and then started to decline. By 11:30 the SPX had closed the gap and hit 1968. Then after a bounce to SPX 1975 by 12:30 the market headed lower again. Heading into the close the market hit SPX 1938, then bounced to close at 1942.
For the day the SPX/DOW were -1.40%, and the NDX/NAZ were -1.15%. Bonds gained 2 ticks, Crude dropped $1.60, Gold slid $14, and the USD was lower. Medium term support drops to the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: weekly Jobless claims and Export/Import prices at 8:30, then Wholesale inventories at 10am.
The fifteenth consecutive gap opening started the day. Then after hitting SPX 1989 the market quickly reversed and closed the upside gap by 11:30. After that the market went sideways for a while before heading lower yet again. This has been a wild technical ride. Today’s high could be considered the end of Minor B. But we will leave the labeling as is for now. The last two declines have been 90 and 64 points respectively. This decline is already 51 points, and without the aide of a gap down opening. Quite possibly that is next. Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum went from extremely overbought to oversold today. Best to your trading this volatile market!
MEDIUM TERM: downtrend
LONG TERM: bull market