SHORT TERM: sideways/choppy activity continues, DOW -79
Overnight Asian markets lost 0.4%. Europe opened higher and gained 0.4%. US index futures were higher overnight and the market opened four points above Friday’s SPX 2090 close. Right after the open the market started to pullback. At 9:45 the Chicago PMI was reported lower: 48.7 v 56.2, and at 10am Pending home sales were reported higher: +0.2% v -2.3%. Just past 10am the SPX hit 2085. After a rally to unchanged at SPX 2090 by 10:30, the market pulled back to 2082 by 11:30. Then after another rally to unchanged at 2pm, the market pulled back to the low of the day at SPX 2080 and closed there.
For the day the SPX/DOW were -0.45%, and the NDX/NAZ were -0.35%. Bonds lost 1 tick, Crude slipped 10 cents, Gold added $7, and the USD was higher. Medium term support slips to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: Construction spending, ISM manufacturing and Auto sales all around 10am.
The market opened higher today, reaching Wednesday’s SPX 2094 high. But just like Wednesday the market pulled back after having an opportunity to break through SPX 2100. Wednesday’s and Friday’s sideways activity was easily attributed to holiday trading. But today’s continuation of that activity can not. We are clearly seeing some choppy activity in the waves, and would not be surprised to see the OEW 2070 pivot range retested before the uptrend resumes. Short term support is at the 2070 pivot and SPX 2046, with resistance at the 2085 pivot and SPX 2097. Short term momentum is trying to setup a positive divergence, and ended slightly oversold. Best to your first day of December trading!
MEDIUM TERM: uptrend
LONG TERM: bull market