SHORT TERM: gap down opening, DOW -117
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.6%. US index futures were higher, then lower, overnight and the market gapped down to SPX 2087 at the open. The market had closed at SPX 2092 on Friday. Right after the open the market continued to decline. By 11:30 it had hit SPX 2067. After that the market rallied to SPX 2076 by noon, pulled back to 2068 by 1pm, then stayed in that range until the last hour of trading. At 3pm Consumer credit was reported lower: $15.9B v $28.9B. The market broke out of the range to the upside, hitting SPX 2079 before closing at 2077.
For the day the SPX/DOW lost 0.70%, and the NDX/NAZ lost 0.65%. Bonds gained 12 ticks, Crude made new bear markets lows losing $2.25, Gold dropped $14, and the USD was higher. Medium term support drops back to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots.
The market gapped down at the open, after Friday’s 40+ point rally, and continued lower until it hit the important OEW 2070 pivot range. After that the market rallied but remained within the 2070 pivot range until the last hour of trading. Not much of a change to report as both scenarios discussed over the weekend, and posted on the hourly chart, are still in play. Inflection point continues. Short term support is at the 2070 pivot and SPX 2042, with resistance at the 2085 pivot and SPX 2104. Short term momentum dropped from overbought Friday to neutral today. Best to your trading this choppy market!
MEDIUM TERM: uptrend at inflection point
LONG TERM: bull market