SHORT TERM: another gap down opening, DOW -296
Overnight the Asian markets lost 0.9%. Europe opened lower and lost 2.0%. US index futures were lower overnight and the market gapped down to SPX 1922 at the open. The market had closed at SPX 1939 yesterday. The selling continued until the SPX hit 1909 about 10:30. Then after a bounce to SPX 1919 by 11:30 the market headed even lower. Heading into the last hour the SPX hit 1897, then bounced to close at 1903.
For the day the SPX/DOW lost 1.85%, and the NDX/NAZ lost 2.20%. Bonds rallied 30 ticks, Crude dropped $1.75, Gold was flat, and the USD was lower. Medium term support drops to the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Tomorrow: the ADP at 8:15, then ISM services at 10am.
The market gapped down at the open for the second time this week. Today’s selling did not find a low in the first half hour like yesterday, but heading lower for most of the day. The completion of a seven wave pattern from the recent SPX 1874 low, and complex zigzag from the SPX 1812 low, noted yesterday, was confirmed today. Labeled the SPX 1947 high with a tentative green Major B. While the market is starting to look weak again, today was the largest decline since SPX 1812, our first preference is a trading range between SPX 1812 and SPX 1947 for the rest of the month. Should the market take out the SPX 1812 low before confirming an uptrend, we would consider Major wave A still underway. Short term support is at the 1901 and 1869 pivot, with resistance at the 1929 and 1956 pivots. Short term momentum declined to oversold after yesterday’s negative divergence. Best to your trading this volatile market!
MEDIUM TERM: Major wave B done, or more of Major A ahead?
LONG TERM: bear market