SHORT TERM: gap down opening reverses higher, DOW +103
Overnight the Asian markets lost 0.2%. Europe opened lower and lost 0.7%. US index futures were lower overnight, and at 8:30 the PPI was reported flat. The market gapped down at the open to SPX 1945, then dropped to 1939 by 10am. At 10am Consumer sentiment was reported lower: 85.7 v 91.9. The market then started to rally, and hit SPX 1956 by 1pm. After a pullback to SPX 1947 by 1:30 the market rallied again. At 2pm the Budget deficit was reported lower: -$64.4bn v -$128.7bn. The rally then continued into the close when the SPX hit 1961.
For the day the SPX/DOW gained 0.55%, and the NDX/NAZ gained 0.60%. Bonds gained 10 ticks, Crude dropped $1.15, Gold slid $2, and the USD was lower. Medium term support rises to the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Today the WLEI was reported lower: 48.0% v 48.3%.
The market gapped down at the open today, hit SPX 1939 two points above yesterday’s low, and then moved higher for the rest of the day. A consolidation day inside yesterday’s SPX 1937-1965 range. The market continues to look corrective. Short term support rises to the 1956 and 1929 pivots, with resistance at the 1973 pivot at SPX 1993. Short term momentum dropped to oversold early then rose above neutral. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bull market