SHORT TERM: gap down opening, DOW -180
Overnight the Asian markets lost 1.0%. Europe opened lower and lost 3.3%. US index futures were lower overnight, and at 9am the FHFA was reported higher: +0.6% v +0.2%. The market gapped down at the open to SPX 1945, and continued to 1940 in the opening minutes. The market had closed at SPX 1967 yesterday. After a bounce to SPX 1948 by 10am the market traded down to 1932 by 11am. Then after another bounce to SPX 1941 the market traded down to 1929 by 1:30. The market then rallied to SPX 1946 by 3:30 before closing at 1943.
For the day the SPX/DOW were -1.15%, and the NDX/NAZ were -1.45%. Bonds gained 20 ticks, Crude lost 75 cents, Gold lost $8, and the USD was higher. Medium term support drops to the 1929 and 1901 pivots, with resistance now at the 1956 and 1973 pivots.
The market gapped down at the open today, reversing yesterday’s gap up opening. After hitting SPX 1940, then 1932, and 1929, the market stabilized somewhat in the afternoon. The impulse scenario, of a declining five waves, from the recent SPX 2021 high continues to unfold. Thus far wave 1 (1953), wave 2 (1980), with wave 3 underway: 1956-1972-1929-1946. The next drop should complete wave 3. Then after a wave 4 rally, wave 5 should be underway potentially into the downtrend low. Short term support is at the 1929 and 1901 pivots with resistance at the 1956 and 1973 pivots. Short term momentum was quite oversold at the low and headed toward neutral into the close. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market