SHORT TERM: gap up opening, DOW +123
Overnight the Asian markets gained 0.2%. Europe opened higher but lost 0.9%. US index futures were much higher overnight, and the market opened at SPX 2021. The market had closed at SPX 2006 on Friday. After a tick up to SPX 2023 the market pulled back to 2015 by 10am. Then after a rally back to SPX 2023 by 10:30, the market dropped to 2006 by 11:30 to close the opening gap. Some more choppy action followed. A rally to SPX 2017 by 1:30, was followed by a pullback to 2008 by 3:30, then the market rallied to close at 2021.
For the day the SPX/DOW gained 0.75%, and the NDX/NAZ gained 0.95%. Bonds added 4 ticks, Crude slipped 30 cents, Gold rallied $11, and the USD was lower. Medium term support rises to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Q3 GDP (est. +2.1%) at 8:30, FHFA housing at 9am, then Existing home sales at 10am.
The market gapped up at the open today creating the best rally since the recent decline from SPX 2077 began. But that rally ended a few minutes after the market opened at SPX 2023, and the market completely closed the upside gap at SPX 2006 by 11:30. After that the market bounced around a bit before rallying back to SPX 2021 at the close. For the third day in a row the market opened at the high of the day and declined after that. Change the pattern, change the trend? After seven waves down into Friday’s SPX 2005 low, the market bounced around between 2006 and 2023 today. The action looked choppy. Short term support at the OEW 2019 pivot and SPX 1993, with resistance at SPX 2042 and the 2070 pivot. Short term momentum rose to just above neutral off of Friday’s positive divergence, where it ended the day. Best to your Q3 GDP trading tomorrow!
MEDIUM TERM: downtrend
LONG TERM: bull market