SHORT TERM: gap up opening volatile day. DOW +125
Overnight the Asian markets ended mixed. Europe opened lower and lost 1.6%. US index futures were lower, then higher, overnight. At 8:30 weekly Jobless claims were reported lower: 278K v 294K, and Durable goods were reported lower: -5.1% v 0.0%. The market gapped up at the open to SPX 1899, ticked up to 1903, and then started to pullback. The SPX had closed at 1883 yesterday. At 10am Pending homes sales were reported higher: +0.1% v -0.9%. By 10:30 the market had completely closed the opening gap and hit SPX 1874. Then for the rest of the day the market traded between the opening hour range: 1894-1879-1899-1886-1899, then closed at 1893.
For the day the SPX/DOW gained 0.65%, and the NDX/NAZ gained 1.10%. Bonds added 6 ticks, Crude rose $1.45, Gold dropped $11, and the USD was lower. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow Q4 GDP (est. +0.8%) at 8:30, the Chicago PMI at 9:45, then Consumer sentiment at 10am.
The market gapped up at the open today, for the third gap opening this week. After hitting SPX 1903 the market sold off to SPX 1874. After that it stayed in that trading range, with an upward bias, for the whole day. We noted in the comments section, yesterday after the close, four possible scenarios at yet another inflection point. These are: Major B ended at SPX 1917, Int. A ended at SPX 1917, Int. B was an irregular wave bottoming at SPX 1873, and the Major wave A downtrend is still underway. Confusing right? The next few days should clear up this dilemma. Short term support is at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum has been drifting up all day after yesterday’s oversold condition. Best to your trading Q4 GDP!
MEDIUM TERM: potential uptrend inflection point
LONG TERM: bear market