SHORT TERM: gap up opening on volatile day, DOW +118
Overnight the Asian markets lost 1.3%. Europe opened higher and gained 1.4%. US index futures were higher overnight, and the market gapped up to SPX 1937 at the open. The market had closed at SPX 1924 yesterday. In the opening minutes the market rallied to SPX 1947 and then started to pullback. By 11:30 the market had completely retraced the gap up opening when hitting 1921. After a rally to SPX 1932 just past noon, the market declined to 1917 by 12:30, bounced to 1927 by 1:30, then hit 1914 by 2:30. After that the market rallied to SPX 1942 by 3:30, then dipped to close at 1939.
For the day the SPX/DOW gained 0.75%, and the NDX/NAZ gained 1.10%. Bonds gained 11 ticks, Crude dropped 60 cents, Gold slipped $5, and the USD was higher. Medium term support rises to the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: the FED’s beige book, and the Treasury deficit at 2pm.
The market gapped up at the open, rallied to SPX 1947, then headed right back down to close the gap. Then after bouncing around for a while the market dropped to SPX 1914, before taking off to the upside into the close. Today’s action looked a lot like yesterday. Yesterday, we had noted three waves up from SPX 1901: 1917-1905-1930. Today that rally from 1905 extended to 1947. But the pullback that followed to 1914, overlapped the first wave at 1917. So the rally off yesterday’s SPX 1901 low looks corrective. Short term support rises to the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum hit overbought during this mornings’ advance, dipped to neutral, then ended just below overbought at the close. Best to your trading this volatile market!
MEDIUM TERM: downtrend
LONG TERM: bull/bear market inflection point