SHORT TERM: choppy day, DOW +9
Overnight the Asian markets ended mixed. Europe opened higher and gained 0.1%. US index futures were higher overnight, and at 8:30 weekly Jobless claims were reported higher: 274K v 257K. The market opened 5 points above yesterday’s SPX 2051 close and continued to rally to 2060 by 10:30. Then the market pulled back to SPX 2046, yesterday’s low, by 1:30. After that the market works its way higher to close just about unchanged.
For the day the SPX/DOW ended mixed, and the NDX/NAZ lost 0.10%. Bonds gained 13 ticks, Crude added 55 cents, Gold slipped $1, and the USD was higher. Medium term support remains at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: monthly Payrolls at 8:30, then Consumer credit at 3pm.
The market opened higher today, rallied to SPX 2060 above yesterday’s high, but then pulled back to yesterday’s low at 2046. All in all a choppy day ahead of monthly Payrolls tomorrow. Coming into Tuesday it looked like the market had declined from the SPX 2111 high in four overlapping waves: 2081-2099-2052-2083. This suggested a potentially strong third wave would be next. Yet, after gap down openings on Tuesday/Wednesday all we have seen is a lot of choppy action. In the mean time the Tech sector continues to decline. Short term support is at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Short term momentum ended the day just above oversold. Trade what’s in front of you!
MEDIUM TERM: downtrend probable
LONG TERM: bear market