SHORT TERM: gap down opening, DOW -290
Overnight the Asian markets lost 0.2%. Europe opened lower and lost 2.4%. US index futures were lower overnight and the market gapped down to SPX 1973 at the open. The market had closed at SPX 1990 yesterday. In the opening minutes the market dropped to SPX 1963. At 10am Leading indicators were reported higher: +0.1% v -0.2%. The market then rebounded to SPX 1979 just before noon. After that the market traded down to SPX 1953, before rebounding to end the week at 1958.
For the day the SPX/DOW were -1.70%, and the NDX/NAZ were -1.35%. Bonds gained 22 ticks, Crude lost $1.95, Gold rallied $7, and the USD was higher. Medium term support drops to the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Today the WLEI was reported lower: 47.8% v 48.0%.
The market gapped down at the opening, continuing yesterday’s post FOMC selloff. Thus far it looks like the market is impulsing to the downside from yesterday’s SPX 2021 high: 1987-2000-1963-1979-1953. This would fit the anticipated flat to complete Int. C, Major C, and Primary IV around the 1869 pivot range. More on this in the weekend update. Short term support ended the week at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Three of these pivots fit quite well in yesterday’s top and today’s decline. Short term momentum ended the week with a slight positive divergence. Best to your weekend and week!
MEDIUM TERM: downtrend
LONG TERM: bull market