SHORT TERM: market back in pullback mode, DOW -208
Overnight the Asian markets gained 0.8%. Europe opened higher but lost 0.4%. US index futures were lower overnight, and the market opened 4 points below Friday’s SPX 1907 close. Right after the open the market continued to pullback until its hit SPX 1889 just past 11am. After that it rallied back to the opening level at SPX 1903 by 1:30. Then the market sold off into the close hitting SPX 1876, then closing at 1877.
For the day the SPX/DOW lost 1.40%, and the NDX/NAZ lost 1.50%. Bonds gained 8 ticks, Crude sank $2.35, Gold rallied $10, and the USD was lower. Medium term support drops back to the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: Case-Shiller and the FHFA at 9am, Consumer confidence at 10am, and the FED starts its FOMC meeting.
The market opened the week at SPX 1903 and headed lower. It did not get any support from Crude as it declined from being +50 cents overnight to -$2.00+ during the day. The market tried twice to rally, getting back to SPX 1903 at 10am and then again at 1:30, but sold off into the end of the day. We labeled Friday’s SPX 1909 high as Intermediate wave A. Minor c was 0.618 Minor a. With the market in the Intermediate wave B pullback mode now, we see three levels of support SPX: 1872, 1861 and 1849. The first two are right around the 1869 pivot, and the latter the 1841 pivot. An Intermediate wave C rally should follow when B concludes. Short term support is at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum fell to oversold after Friday’s negative divergence. Best to your trading this volatile market!
MEDIUM TERM: uptrend may be underway
LONG TERM: bear market