SHORT TERM: gap down opening, DOW -367
Overnight the Asian markets lost 1.2%. Europe opened lower and lost 1.0%. US index futures were lower overnight, and the market gapped down to SPX 2032 at the open. The SPX had closed at 2042 yesterday. The market continued to decline and hit SPX 2018 around 10:30. Then after a rally to SPX 2028 just past 11am, the market made a lower low at 2013 by 12:30. After another rally to SPX 2024 the market declined to 2005 and closed 2006.
For the day the SPX/DOW lost 1.95%, and the NDX/NAZ lost 1.70%. Bonds gained 12 ticks, Crude lost 35 cents, Gold rallied $15, and the USD was lower. Medium term support drops to the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Today the WLEI was reported higher: 49.4% v 49.2%, and the GNP was reported unchanged at +1.9%.
The market gapped down at the opening today, continuing yesterday’s selloff. After hitting SPX 2018 at 10:30, it had a series of waves lower: 2028-2013-2024-2005. We can now count seven waves down from Wednesday’s SPX 2077 high. More on this in the weekend update. Short term support is at SPX 1993 and the 1973 pivot, with resistance at the 2019 pivot and SPX 2042. Short term momentum displays a slight positive divergence. Best to your weekend!
MEDIUM TERM: potential uptrend under pressure
LONG TERM: bull market