SHORT TERM: quiet day ahead of Friday’s GDP report, DOW -23
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.5%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported lower: 268K v 278K, and Durable goods were reported higher: +3.4% v +0.8%. The market opened three points above yesterday’s SPX 2091 close and immediately began to pullback. At 10am Pending home sales were reported higher: +5.1% v +1.4%. At 11am the SPX hit 2087 and then started to drift higher. At 12:30 FED governor Powell speech: http://www.federalreserve.gov/newsevents/speech/powell20160526a.htm. By 3:30 the SPX hit 2093, and then pulled back to close at 2090.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ gained 0.20%. Bonds gained 11 ticks, Crude slipped 25 cents, Gold dipped $4, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Today Q2 GDP was raised: +2.9% v +2.5%. Tomorrow: Q1 GDP (est. +1.0%) at 8:30, then Consumer sentiment at 10am.
The market opened higher today, pullback 7 points, then went sideways for the rest of the day. It appears Memorial day holiday trading is already underway. The market did pullback after yesterday’s short term negative divergence. But so far it is only 8 points. The previous pullback, since the SPX 2026 low last week, was only 11 points. Nearly a 70 point rally with only two small pullbacks along the way. So far not much selling pressure during this rally. The market needs to drop back into the 2070 pivot range to get selling pressure underway. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2111 and the 2131 pivot. Short term momentum ended the day around neutral. Best to your trading the GDP report tomorrow!
MEDIUM TERM: downtrend weakening
LONG TERM: bear market rally