SHORT TERM: consolidation day, DOW -4
Overnight the Asian markets gained 1.3%. Europe opened higher and gained 0.7%. US index futures were higher, then lower overnight. At 8:30 weekly Jobless claims were reported lower: 271K v 276K, and the Philly FED was reported higher: +1.9 v -4.5. The market opened three points below yesterday’s SPX 2084 close, rallied to 2087, and then started to pullback. At 10am Leading indicators were reported higher: +0.6% v -0.2%. Around noon the SPX hit 2079, then tried to rally. For the rest of the day the market stayed in that opening range, ending the day at SPX 2081.
For the day the SPX/DOW lost 0.05%, and the NDX/NAZ ended mixed. Bonds gained 5 ticks, Crude slipped 20 cents, Gold rallied $11, and the USD was lower. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow is Options expiration Friday.
The market lower today, made a new high for this rally at SPX 2087, dipped to 2079, then stayed in that range for the rest of the day. After rallying 2% in two days, today looked like a consolidation day. Count remains the same SPX: 2067-2046-2087. Short term support remains at the 2070 pivot and SPX 2046, with resistance the 2085 pivot and SPX 2116. Short term momentum headed down towards neutral after yesterday’s extreme overbought condition. Best to your Option expiration trading!
MEDIUM TERM: uptrend
LONG TERM: bull market