SHORT TERM: gap down opening, DOW -254
Overnight the Asian markets gained 1.2%. Europe opened lower and lost 1.7%. US index futures were lower overnight, and at 8:30 weekly Jobless claims were reported unchanged at 276K. The market gapped down at the open to SPX 2063. The SPX had closed at 2075 yesterday. At 10:30 the SPX had hit 2058, then rallied to 2068 just before 11am. Then the market dropped to SPX 2054 by 12:30 and tried to rally again. At 1:30 the SPX hit 2062, but headed lower once again. Heading into the close the SPX hit 2046 and closed there.
For the day the SPX/DOW lost 1.40%, and the NDX/NAZ lost 1.15%. Bonds gained 5 ticks, Crude dropped $1.30, Gold ended flat, and the USD was lower. Medium term support drops to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Retail sales and the PPI at 8:30, then Consumer sentiment and Business inventories at 10am.
The market gapped down at the open to start the day, dropping well below SPX 2075. Minor wave b did end yesterday, as suspected, at SPX 2087. The pullback continued throughout the day, with a rally of 10 points and 8 points, until the market hit SPX 2046 at the close. The current decline from SPX 2087 is a bit larger than the waves we have seen since this Major 4 pullback began. This may not mean anything, or it may suggest Minor c will travel straight down with no minute wave reversals. The daily RSI is already oversold. Now we are watching the hourly MACD. Short term support is at SPX 2040 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum ended the day quite oversold. Best to your Friday the 13th trading!
MEDIUM TERM: uptrend
LONG TERM: bull market