SHORT TERM: gap down opening then rebound, DOW +67
Overnight the Asian markets lost 0.3%. Europe opened lower and lost o.4%. US index futures were lower overnight, and the market gapped down to SPX 1990 at the open. The SPX had closed at 2000 on Friday. In the opening minutes the market bounced to SPX 1995, then pulled back to 1989. After that it started to rally. Just past 1pm the SPX hit 2006, when two speeches were released by FED officials: http://www.federalreserve.gov/newsevents/speech/fischer20160307a.htm, http://www.federalreserve.gov/newsevents/speech/brainard20160307a.htm. Then the market started to pullback. Just before 3pm the SPX hit 1991, bounced, retested that low and then again rallied. Also at 3pm Consumer credit was reported lower: $10.8B v 21.3B. Heading into the close the SPX hit 2002, and closed there.
For the day the SPX/DOW gained 0.25%, and the NDX/NAZ lost 0.40%. Bonds dropped 5 ticks, Crude rallied $2.05, Gold added $6, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2043 pivots. Tomorrow nothing on the agenda.
The market gapped down at the open, hit the low of the day at SPX 1989 in the first hour of trading, and then rallied back to within 3 points of the 2009 uptrend high. After that the market came within 2 points of the low of the day, and rallied again. A choppy day, with no clear direction, except for the support given to big oil stocks, and beaten down stocks, with the continuing rally in Crude. May need a reversal in the Crude market, before the next SPX downtrend gets underway. Short term support is at SPX 1989 and the 1973 pivot, with resistance at SPX 2009 and the 2019 pivot. Short term momentum dropped below neutral during today’s pullback, and ended just above neutral. Best to your trading!