SHORT TERM: another choppy day, DOW -56
Overnight the Asian markets were mixed. Europe opened higher and gained 0.6%. US index futures were also higher overnight, and the market opened three points above yesterday’s SPX 2082 close. After a tick up to SPX 2086 the market pulled back to 2075 just before 11am. Then the market rallied to a slightly higher high at SPX 2087 by 12:30. After that it headed back down into a SPX 2075 close.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.20%. Bonds slid 5 ticks, Crude dropped $1.20, Gold slipped $4, and the USD was lower too. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: weekly Jobless claims at 8:30, a speech from FED chair Yellen at 9:30, and a speech from FED vice chair Fischer at 6pm.
The market opened higher today, dropped down to SPX 2075, then made a higher high at 2087. That last spurt could have been the high for Minor wave b: 2083-2070-2087. When the market drops below today’s SPX 2075 low we will label it as such. For now we have placed a tentative green label at SPX 2087. This Major wave 4 decline has been quite organized, with 30+ point declines and 10+ point retraces. If it remains this way it will be easier to identify the low. Short term support is at the 2070 pivot and SPX 2040, with resistance at the 2085 pivot and SPX 2120. Short term momentum did hit overbought at today’s high then declined. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market