SHORT TERM: market pulls back, DOW -51
Overnight the Asian markets gained 1.2%. Europe opened lower and finished mixed. US index futures were higher overnight. At 8:15 the ADP was reported lower: 182K v 200K, and at 8:30 the Trade deficit narrowed: -$40.8B v -$48.3B. The market opened four points above yesterday’s SPX 2110 close, ticked up to 2115, then started to pullback. At 10am the SPX hit 2104, ISM services was reported higher: 59.1 v 56.9, and FED chair Yellen gave her congressional testimony: http://www.federalreserve.gov/newsevents/testimony/yellen20151104a.htm. The market rallied to SPX 2111 by 10:30, then headed even lower. Just past 1pm the SPX hit its low for the day at 2097. Then it rallied to SPX 2106 by 2:30 before dipping to 2102 at the close.
For the day the SPX/DOW were -0.30%, and the NDX/NAZ were -0.05%. Bonds lost 6 ticks, Crude dropped $1.35, Gold fell $10, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: weekly Jobless claims at 8:30, and a speech from FED governor Tarullo at 1:30.
The market opened higher today, ticked up, and then pulled back for the rest of the day. Thus far we have six waves with an overlapping wave, for Minor 5: 2085-2063-2094-2079-2116-2097. Should the SPX 2094 level hold, as noted yesterday, Minor 5 should make higher highs before completing. If it doesn’t hold, Int. iii has probably completed and a pullback to the 2085 pivot range may be underway. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2120 and the 2131 pivot. Short term momentum hit slightly oversold at today’s low. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market