SHORT TERM: gap down opening on terrorist attack, DOW -41
Overnight the Asian markets gained 0.6%. Europe markets opened lower but gained 0.1%. US index futures were lower overnight. At 9am the FHFA index was reported higher: +0.5% v +0.4%. The market gapped down to SPX 2043 at the open, it had closed at SPX 2052 yesterday. In the opening minutes the market ticked down to SPX 2041, and then started to rally. Around 2:30 the market hit SPX 2057. Then it dropped to SPX 2048 during the last hour, and bounced to 2050 to end the day.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were +0.25%. Bonds lost 8 ticks, Crude slipped 5 cents, Gold rose $4, and the USD was higher. Medium term support remains at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: New home sales at 10am.
The market gapped down at the open, hit SPX 2041, then rallied to a new uptrend high at SPX 2057. Still not much upside progress since options expiration Friday: 2052, 2054, 2057, with the 2043 pivot holding support all three days. Again not much to report on the short term count, except it now looks like the 2043 pivot range only needs to be broken to get some downside activity. Short term support is at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Short term momentum has a series of negative divergences. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market