SHORT TERM: choppy pullback to start week, DOW -62
Overnight the Asian markets lost 0.3%. Europe opened higher but lost 0.4%. US index futures were higher overnight, and the market opened two points above Friday’s SPX 1961 close, then immediately began to pullback. In the opening minutes the SPX hit 1949, then tried to rally. By 10:30 the SPX reached 1958, but reversed again and headed lower. At 1pm the market hit SPX 1948. Then after a bounce to SPX 1955 by 2pm the market dipped to close at 1953.
For the day the SPX/DOW were -0.40%, and the NDX/NAZ were -0.35%. Bonds gained 1 tick, Crude lost 55 cents, Gold added $1, and the USD was higher. Medium term support drops to the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: Retail sales and the NY FED at 8:30, Industrial production (est. -0.4%) at 9:15, then Business inventories at 10am.
The market opened at its high today, dropped to SPX 1949, then toggled the OEW 1956 pivot for the rest of the day. While the market traded lower for nearly the entire day, there was not a whole lot of conviction either way. During the day the declines seemed to be gradual, and the rallies occurred in spurts (short covering ahead of the FED?). Short term support is now at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum remained around neutral most of the day. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market