SHORT TERM: gap down opening, DOW -42
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.9%. US index futures were lower overnight. At 8:30 Durable goods were reported lower: -1.2% v -2.3%, and at 9am Case-Shiller was reported higher: 5.1% v 5.0%. The market gapped down at the open to SPX 2064, dipped to 2062, then rallied to 2068 by 10am. The market had closed at SPX 2071 yesterday. At 10am Consumer confidence was reported lower: 97.6 v 103.0. The market then pulled back to SPX 2061 by 10:30, rallied to 2070 by 11am, and then declined to 2059 by 1pm. After that the market started to work its way higher. Heading into the close the SPX hit 2066 and closed there.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were mixed. Bonds gained 10 ticks, Crude lost 75 cents, Gold rose $2, and the USD was higher. Medium term support drops to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: the FED concludes its two day FOMC meeting.
The market gapped down at the open today, opening below yesterday’s low. After bouncing around a bit it rallied back to within one point of yesterday’s SPX 2071 close, and then made a lower low at 2059. On the lower low we updated the hourly chart to display a Minor wave 3 completed at SPX 2080. The pullback to SPX 2059, and accompanying short term oversold condition, appears sufficient for a Minor wave 4 low. If not, we may see a positive divergence develop if the market makes a slightly lower low. Either way, a rising Minor wave 5 should be next. Short term support slips to SPX 2042 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum hit oversold to day and then bounced to neutral. Best to your FOMC trading tomorrow!
MEDIUM TERM: uptrend
LONG TERM: bull market