SHORT TERM: gap down opening then rebound, DOW -22
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 0.5% as well. US index futures were lower overnight, and at 8:30 the CPI was reported unchanged. The market gapped down at the open to SPX 1911 and continued to pullback. By 10am it hit the low for the day at SPX 1902 and then started to rally. At 11:30 the SPX hit 1919, then went into a drift to downward pullback until hitting 1912 at 3pm. Then a bounce into the close ended the week at SPX 1918.
For the day the SPX/DOW lost 0.05%, and the NDX/NAZ gained 0.35%. Bonds lost 1 tick, Crude dropped 85 cents, Gold slid $7, and the USD was lower. Today the WLEI was reported lower: 46.9% v 47.3%, and the GDPn was reported lower: +2.6% v +2.7%.
The market gapped down at the open, sold off to the 1901 pivot, rallied back to unchanged, and like yesterday spent the afternoon in a trading range. With today’s early selloff we posted an Int. wave a label at SPX 1931. Int. wave b is currently underway. When it concludes Int. wave c should carry the market to the resistance pivots ending this unconfirmed uptrend. Short term support is at the 1901 and 1869 pivots, with resistance at the 1929, 1956, 1973 pivots. Short term momentum ended the week around neutral. Best to your weekend!
MEDIUM TERM: uptrend likely underway
LONG TERM: bear market