SHORT TERM: gap up opening sold, DOW -49
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 0.5%. US index futures were higher overnight, and the market gapped up to SPX 2038 at the open. That was the high for the day. After that opening the market pulled back to SPX 2026 by 10:30, rallied to 2035 by 11:30, then declined to 2020 by 1:30. Then the market started to rally. The rally lasted until 2:30 when the SPX hit 2031. Heading into the close the SPX hit 2017, then ended the day at 2019.
For the day the SPX/DOW were -0.45%, and the NDX/NAZ were -0.70%. Bonds gained 11 ticks, Crude dropped $1.15, Gold slid $10, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: weekly Jobless claims at 8:30, the FHFA at 9am, then Existing home sales and Leading indicators 10am. Before the open the ECB meets.
The market gapped up at the open to SPX 2038, a point below yesterday’s 2039 uptrend high, then pulled back into the afternoon to 2017. We labeled the SPX 2039 as Minor wave 1 of Int. iii, and today’s pullback is Minor wave 2. Thus far, the market got sufficiently oversold at the SPX 2017 low where Minor 2 might have ended. If so, Minor 3 should soon be underway to new uptrend highs. Short term support is at the 2019 pivot and SPX 2000, with resistance at SPX 2040 and the 2070 pivot. Short term momentum declined to oversold after yesterday’s negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market