SHORT TERM: gap up opening then choppy day, DOW +36
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and the market gapped up to SPX 1987 at the open. The market had closed at SPX 1979 yesterday. As the market moved higher, at 10am Wholesale inventories were reported higher: +0.3% v -0.1%. By 10:30 the market had reached SPX 1992, and then started to pullback. At 11am the SPX hit 1980, rallied to 1993 by noon, pulled back 1984 just past 3pm, the rose to end the day at 1989.
For the day the SPX/DOW gained 0.35%, and the NDX/NAZ gained 0.60%. Bonds lost 13 ticks, Crude rallied $1.75, Gold dropped $9, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2043 pivots. Tomorrow: the ECB meets, weekly Jobless claims at 8:30, and the Budget deficit at 2pm.
The market gapped up at the open, to break the gap down opening streak, and probably avoided another selloff. The SPX spent the entire day within yesterday’s 1977-1994 range (1980-1993). An indecision day ahead of the ECB tomorrow. Not much to report on the short term action, except that it looks quite corrective since the SPX 2009 high. Short term support remains at the 1973 and 1956 pivots, with resistance at SPX 2009 and the 2019 pivot. Short term momentum ended the day around neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market