SHORT TERM: gap up opening sold, DOW +28
Over the extended weekend the Asian markets were flat, and European markets gained 1.3%. US index futures were significantly higher heading into the open, and the market gapped up to SPX 1901. The SPX had closed at 1880 on Friday. Immediately after the open the market started to pull back. By 10am the market nearly closed the gap when it hit 1886, then it rallied again. Also at 10am the NAHB was reported lower: 60 v 61. The market then rallied back to the high of the day at SPX 1901 by 10:30. After that the selling renewed. By 11:30 the SPX hit 1884, rallied to 1896 just before noon, then headed even lower. Just before 3pm the SPX hit 1865, then rallied to 1889, before closing nearly unchanged at 1881. Volatility continues.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ were mixed. Bonds lost 5 ticks, Crude dropped 85 cents, Gold slipped $1, and the USD was higher. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: Housing starts, Building permits and the CPI at 8:30.
US index futures were sharply higher overnight, eased back some into the open, and the market gapped up 20 points. Today was the twelfth consecutive gap opening since December 30th: 7 up – 5 dn, when the market closed at SPX 2063. Quite a volatile period since the beginning of the year. The market opened at SPX 1901, pulled back to 1886, then hit 1901 again. At that second high we could count a potential five waves up from Friday’s SPX 1858 low: 1885-1873-1901-1886-1901. After that the market did three waves down: 1884-1896-1865. As long as the SPX 1858 low holds, this could imply some impulsive activity underway, or even a 5-3-5 zigzag higher. Short term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum was slightly oversold at today’s low after hitting neutral this morning. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bear market