SHORT TERM: volatile day to start week, DOW +103
Overnight the Asian markets lost 0.7%. Europe opened higher but lost 1.6%. US index futures were higher, then lower, overnight and the market opened one point above Friday’s SPX 2012 close. The market rallied to SPX 2020 by 10am, then dropped quickly to 2004 just past 10am. Minutes later the market spiked to SPX 2022, then dropped to a new downtrend low at 1993 by 11:30. After that the market rallied to SPX 2018 by 1pm, pulled back to 2006 by 1:30, then rallied to 2023 just before a 2022 close.
For the day the SPX/DOW gained 0.55%, and the NDX/NAZ gained 0.55%. Bonds dropped 24 ticks, Crude rallied 55 cents, Gold slid $13, and the USD was higher. Medium term support rises to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: the CPI and NY FED at 8:30, then the NAHB at 10am.
The market opened about flat today, bounced, pulled back, rallied, sold off, then rallied again. A volatile day swinging between SPX 1994 and 2023. Oddly enough, the index futures had a 28 point range overnight. But today’s cash market increased the daily futures range to 36 points. A volatile day. The low for the day found support at the 50% uptrend retracement level of SPX 1993. A 30 point rally followed that low. While this could be the low of the downtrend, a few technical factors we have been tracking, are still not aligned. Possibly an inside trading day, retest of the low or even lower, tomorrow will set things up. Short term support rises to the 2019 pivot and SPX 1992/1993, with resistance at SPX 2034/2037 and SPX 2050/2056. Short term momentum hit extremely oversold at the low then rebounded to above neutral. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market