SHORT TERM: gap up opening faded, DOW +10
Overnight the Asian markets lost 0.4%. Europe opened higher and gained 0.4%. US index futures were lower, then higher, overnight and the market gapped up to SPX 2020 at the open. The market had closed at SPX 2013 yesterday. In the opening minutes the market ticked up to SPX 2021, and then began to pullback. At 10:30 the SPX hit 2007, rallied to 2018 by 11am, and then pulled back to 2004 by around 12:30. After that the market rallied to its high of the day at SPX 2022 by 2:30, pulled back to 2011. then bounced to close at 2117.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ lost 0.25%. Bonds gained 4 ticks, Crude slid 95 cents. Gold added $3, and the USD was higher. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: the ADP at 8:15, Trade deficit at 9am, Factory orders and ISM services at 10am, then FOMC minutes at 2pm.
The market gapped up at the open today, hit SPX 2021, pulled back to 2004, then rallied to 2022. While the gap up opening constructively continued yesterday’s afternoon rally, the pullback into early afternoon today suggests it is all corrective. Thus far from yesterday’s SPX 1990: 2006-1994-2021-2004-2022. Notice the second pullback (2004) overlapped the first rally (2006). This suggests yesterday’s low may have only completed Minor A of Int. C, and the recent rally is Minor B with Minor C down yet to occur. Lower support remains at SPX 1990, and the 1973/1956 pivots. Short term support is at SPX 1990/93 and the 1973 pivot, with resistance at the 2019 pivot and SPX 2044/46. Short term momentum bounced to neutral after yesterday’s extreme oversold condition. Best to your trading the often volatile FOMC minutes!
MEDIUM TERM: downtrend
LONG TERM: bull market