SHORT TERM: quiet day, DOW +16
Overnight the Asian markets gained 1.1%. Europe opened higher and gained 0.8%. US index futures were lower overnight, and the market opened five points below Friday’s SPX 2022 close. By 10am the market hit the low for the day at SPX 2012 and then started to rise. Heading into the last hour of trading the market hit SPX 2025, then pulled back to close at 2020.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.10%. Bonds gained 1 tick, Crude dropped $1.20, Gold slid $15, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2043 and 2070 pivots. Tomorrow: Retail sales, the PPI, and the NY FED at 8:30, then Business inventories and the NAHB at 10am.
The market opened lower today, touched SPX 2012, then rose to a marginal new uptrend high at 2025. Not much of a pullback, nor rally, to make any difference in the short term count despite the rallies in overseas markets. As noted in the weekend update, there remains a negative divergence on the daily RSI. Plus today, with the marginal new high, we now have a developing negative divergence on the hourly RSI. The next pulback could be quite telling. Short term support is at the 2019 and 1973 pivots, with resistance at SPX 2028 and the 2043 pivots. Best to your Tuesday trading!
MEDIUM TERM: uptrend
LONG TERM: bear market