SHORT TERM: quiet open market drifts lower, DOW -56
Overnight the Asian markets gained 0.1%. Europe opened lower but gained 0.4%. US index futures were higher overnight, but the market opened two points below Friday’s SPX 2073 close. At 10am Factory orders were reported lower: -1.7% v +1.6%. Just past 11am the SPX hit 2065, bounced to 2072 by 12:30, then headed lower again. Heading into the last hour the SPX hit 2063, then bounced to close at 2066.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.45%. Bonds gained 7 ticks, Crude dropped $1.15, Gold slid $8, and the USD was lower. Medium term support drops to the 2043 and 2019 pivots, with resistance now at the 2070 and 2085 pivots. Tomorrow: the Trade deficit at 8:30, then ISM services at 10am.
The market opened slightly lower today, tried to rally back to the uptrend high at SPX 2075, fell one point short, then pulled back for the rest of the day. Not much change on the short term count with today’s quiet trading. The trend remains up, and will not likely be threatened until the SPX drops to the 2043 and then the 2019 pivots. Currently, a drop below SPX 2060 may signal the first signs of weakness. Short term support is at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Short term momentum remained around neutral most of the day. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market