SHORT TERM: gap up opening faded, DOW -168
Overnight the Asian markets gained 0.2%. Europe opened higher but lost 1.2%. US index futures were higher overnight. At 8:30 monthly Payrolls were reported higher: 292K v 211k. The market gapped up at the open to SPX 1956, pushed up to 1960, the high of the day, then began to pullback. The market had closed at SPX 1943 yesterday. At 10am Wholesale inventories were reported lower: -0.3% v -0.1%. The pullback continued until the SPX made a new low for the downtrend at 1933 by 11:30. Then the market rallied to SPX 1950 by 12:30. After that the market did a gradual decline to 1918, the low for the day, just before a 1922 close.
For the day the SPX/DOW were -1.05%, and the NDX/NAZ were -0.90%. Bonds gained 13 ticks, Crude slipped 35 cents, Gold dropped $5, and the USD was higher. Medium term support drops to the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Today the WLEI was reported lower: 48.6% v 49.1%, and the GDPn was reported lower: +0.8% v +1.3%.
The market gapped up to start the day, hit its high a few minutes thereafter, then headed down for the rest of the day. This occurred despite a terrific monthly payrolls report. Guess all news is bad news now. By the end of the day the market had lost about 6% for the week. One of the largest weekly declines of the entire bull market. Will review the charts and try to sort out what this week implies. But it appears for now the bears are in control and the bulls are on the sidelines. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bull market