SHORT TERM: lower open then rebound, DOW +80
Overnight the Asian markets lost 0.7%. Europe opened lower but finished mixed. US index futures were lower overnight, and at 8:30 monthly Payrolls were reported lower: 160K v 215K. The market opened 9 points below yesterday’s SPX 2051 close, rallied back to 2052 in the opening minutes, and then headed lower. At 11am the SPX hit 2039 and then started to rally. At 3pm Consumer credit was reported higher: $29.6B v $17.3B, and the SPX hit 2058. Then after a pullback to SPX 2053 the market bounced to close at 2057.
For the day the SPX/DOW gained 0.40%, and the NDX/NAZ gained 0.45%. Bonds lost 6 ticks, Crude rose 25 cents, Gold rallied $11, and the USD was higher. Medium term support remains at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Today long term investor sentiment was reported higher: 54.8% v 54.0%.
The market opened lower today, made a new low for this decline at SPX 2039, then rallied into the close. Needless to say it was another choppy day, among many this week, with a generally downward bias. The choppiness, however, is starting to look organized. More on this in the weekend update. Best to your weekend!
MEDIUM TERM: downtrend probably underway
LONG TERM: bear market