SHORT TERM: consolidation day, DOW -24
Overnight the Asian markets finished mixed. Europe opened lower and lost 0.5%. US index futures were lower overnight, and the market opened two points below Friday’s SPX 2075 close. As the market continued to pullback New home sales were reported lower: 468K v 552K at 10am. Also at 10am the SPX hit its low for the day at 2067. Then the market tried to rally. At 1:30 the market had risen to SPX 2074, but then it pulled back to end the day at 2071.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were +0.10%. Bonds gained 6 ticks, Crude lost 75 cents, Gold slipped $1, and the USD was lower. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: Durable goods orders at 8:30, Case-Shiller at 9am, and Consumer confidence at 10am.
The market opened slightly lower to start the week, traded down to SPX 2067, and then drifted sideways for the rest of the day. The pullback from Friday’s SPX 2080 uptrend high to today’s 2067 low was enough to trigger a wave reversal. We now have six waves from the recent SPX 2017 low: 2055-2042-2078-2064-2080-2067 (so far). There are a few possibilities here. A pullback to SPX 2064 would suggest Minute i ended and Minute ii is underway. A pullback to below SPX 2055 would suggest Minor 3 ended and Minor 4 is underway. If the market makes new highs before either of these two, Minor 3 is still subdividing in Micro waves. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market