SHORT TERM: market starts the week mixed, DOW -35
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 0.5%. US index futures were higher overnight, but the market opened unchanged at SPX 2057. Right after the open the market rallied to SPX 2064 by 10am, then pulled back to 2054 by 11:30. After that the market worked its way higher for the rest of the day hitting SPX 2064 again at 3pm, then pulled back to end the day at 2059.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.30%. Bonds gained 10 ticks, Crude dropped $1.25, Gold fell $25, and the USD was higher. Medium term support remains at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Wholesale inventories at 10am.
The market opened unchanged to start the week, rallied to 2064, pulled back to 2054, rallied back to 2064, then ended the day at 2059. The tech stock rally helped the cyclical stocks today. China, btw, has dropped nearly 5.5% in the past two days. Thus far the rally from Friday’s SPX 2039 low has travelled 25 points, which is about inline with the previous two rallies (21 pts and 31 pts) during this decline. Also at today’s late SPX 2064 high short term momentum displayed a negative divergence. Still expecting the market to visit the 2019 pivot soon. Short term support remains at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Best to your trading!
MEDIUM TERM: downtrend probable
LONG TERM: bear market