SHORT TERM: another gap down opening, DOW -163
Overnight the Asian markets lost 1.0%. Europe opened lower and lost 1.7%. US index futures were sharply lower overnight, and the market gapped down to SPX 2058 at the open. The market had closed at SPX 2077 yesterday. It the first few minutes of trading the market dropped further to SPX 2053, rallied to 2063, and then declined to 2052 by 10:30. After that the market rallied to SPX 2074 by 11am. Then after a pullback to SPX 2059 by 1:30, the market bounced to 2071 just past 2pm. Another pullback took the market to SPX 2060 by 3:30, then a bounce ended the day at 2064.
For the day the SPX/DOW lost 0.75%, and the NDX/NAZ ended mixed. Bonds gained 2 ticks, Crude ended flat, Gold added $2, and the USD was lower. Medium term support drops to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Wholesale inventories at 10am.
The market gapped down at the open for the second day in a row. This time, however, the OEW 2070 support pivot was broken as the market opened at SPX 2058. After some bouncing around early the market made a low at SPX 2052, and then rallied to 2074. After that the market went into another trading range for the rest of the day. With all the choppy action the medium term trend remains at an inflection point. Counts can be made for both bullish and bearish outcomes short term. But overall the downtrend scenario is gaining in probability. Short term support is at SPX 2052 and SPX 2042 with resistance at the 2070 and 2085 pivots. Short term momentum hit oversold this morning then bounced. Best to your trading this choppy market!
MEDIUM TERM: uptrend at inflection point
LONG TERM: bull market