SHORT TERM: decline resumes, DOW -185
Overnight the Asian markets lost 1.2%. Europe opened lower but gained 0.7%. US index futures were lower overnight. At 8:30 Retail sales were reported higher: +1.3% v -0.3%, and the PPI was reported higher: +0.1% v -0.1%. The market opened three points below yesterday’s SPX 2064 close, but immediately bounced to 2067 in the opening minutes. After that it started to pullback. At 10am Consumer sentiment was reported higher: 95.8 v 89.7, and Business inventories were reported higher: +0.4% v -0.1%. The market hit SPX 2057 by 10:30, rallied to 2066 by 11:30, and then headed even lower. Around 2:30 the SPX hit 2043, then bounced into a 2047 close.
For the day the SPX/DOW lost 0.95%, and the NDX/NAZ lost 0.40%. Bonds gained 12 ticks, Crude slid 45 cents. Gold rose $5, and the USD was higher. Medium term support remains at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Today the Q2 GDP est. was reported higher: +2.8% v +2.2%.
The market opened lower today, rallied to SPX 2067, dropped to 2056, rallied to 2066, then dropped to the low for the week at the 2043 pivot. Looks like the next decline is underway from Tuesday’s SPX 2085 high: 2053-2071-2043 so far. More on this and some other observations in the weekend update. Best to your weekend!
MEDIUM TERM: downtrend probable
LONG TERM: bear market