SHORT TERM: gap up opening then volatility, DOW +183
Overnight the Asian markets lost 2.3%. Europe opened lower and lost 1.4%. US index futures were higher overnight, and at 8:15 ADP was reported lower: 205K v 257K. The market gapped up at the open to SPX 1914 and then headed lower. The SPX had closed at 1903 yesterday. At 10am ISM services was reported lower: 53.5 v 55.3. The market continued to decline until 10:30 when the SPX hit 1872. After that there were a series of rallies and pullbacks: 1891-1879-1899-1885-1895-1881. Just after 2pm the market took of to the upside, hitting SPX 1918 just before 3pm. Then after a pullback to SPX 1904 by 3:30, the market rallied into a 1913 close.
For the day the SPX/DOW gained 0.80%, and the NDX/NAZ lost 0.40%.Bonds lost 2 ticks, Crude rallied $2.65, Gold rose $12, and the USD fell. Medium term support remains at the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Tomorrow: weekly Jobless claims at 8:30, then Factory orders at 10am.
The market gapped up at the open this morning then immediately sold off to SPX 1872. At that low we could count three waves down from SPX 1947: 1897-1914-1872. We have labeled this Minor A on the hourly chart. After that the market rallied, in a choppy pattern, closing the gap and hitting a higher high on the day at SPX 1918. This is most likely part of a Minor B counter-rally. Today was quite volatile compared to Monday/Tuesday. Short term support remains at the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Short term momentum rose from quite oversold to nearly overbought in the afternoon. Best to your trading this volatility!
MEDIUM TERM: tentative Major wave labels remain
LONG TERM: bear market