SHORT TERM: gap down opening, DOW +15
Overnight Asian markets were -0.1%. Europe opened higher but finished mixed. US index futures were lower overnight, and the market gapped down to SPX 2026 at the open. The market had closed at SPX 2033 on Friday. In the opening minutes the SPX hit 2022, and then started to rally. At 10am the NAHB was reported higher: 64 v 62. Also at 10am: http://www.federalreserve.gov/newsevents/speech/brainard20151019a.htm. The rally continued to just before noon when the SPX hit last week’s high at 2034. Then it started to pullback again. By 1pm the SPX had hit 2025, then it rallied into the close to end the day at 2034.
For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.45%. Bonds lost 3 ticks, Crude dropped $1.25, Gold slipped $5, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Building permits and Housing starts at 8:30. Then a speech from FED governor Powell at 9:15, and a speech from FED chair Yellen at 11am.
The market gapped down at the open today, traded down to SPX 2022, then rallied to the uptrend high at SPX 2034 to end the day. Despite the gap down it looked like a consolidation day as most of the foreign indices were relatively flat as well. No change in the larger count: still Minor wave 1 of Int. iii underway. Looking for a larger pullback than today’s 12 points to signal a Minor 2. Short term support remains at the 2019 pivot and SPX 2000, with resistance at SPX 2040 and the 2070 pivot. Short term momentum declined to neutral during the day, then drifter up. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market