SHORT TERM: market rebounds, DOW +118
Overnight the Asian markets lost 1.2%. Europe opened higher and gained 0.3%. US index futures were higher overnight, and the market opened five points above Friday’s SPX 2065 close. After a push up to SPX 2072, and a dip to 2066, in the first half hour the market turned higher. At 10am ISM manufacturing was reported lower: 50.8 v 51.8, and Construction spending higher: +0.3% v -0.5%. The market rose to SPX 2075 by 10:30, dipped to 2070 by 11am, and then moved even higher. Around 3:30 the SPX hit 2083, then dipped to close at 2081.
For the day the SPX/DOW gained 0.70%, and the NDX/NAZ gained 0.90%. Bonds lost 12 ticks, Crude dropped $1.00, Gold slipped $4, and the USD was lower too. Medium term support rises back to the 2070 and 2043 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: monthly Auto sales.
The market opened higher today, following Friday’s afternoon rally, bounced around a bit early, and then hit the 2085 pivot range. With the rally above SPX 2081 today the entire decline from the recent 2111 high to 2052 low begins to look corrective. Unless the market heads lower again before hitting SPX 2100. Considering how oversold the NDX/NAZ were on Friday, this rebound should not have been too much of a surprise. Short term support now at the 2070 and 2043 pivots, with resistance at the 2085 pivot and SPX 2104. Short term momentum rose from quite oversold on Friday to quite overbought today. Trade what’s in front of you!
MEDIUM TERM: uptrend rebounding
LONG TERM: bear market rally