SHORT TERM: lower open then reversal again, DOW -32
Overnight the Asian markets gained 0.3%. Europe opened higher but lost 0.5%. US index futures were lower overnight. At 8:30 monthly Payrolls disappointed: 38K v 163K, but the Unemployment rate declined to 4.7% and the Trade deficit improved: -$37.4B v -$40.4B. The market opened 5 points below yesterday’s SPX 2105 close, and continued to decline. At 10am Factory orders were reported higher: +1.9% v +1.1%, and ISM services was reported lower: 52.9 v 55.7. At 10:30 the SPX revisited the 2085 pivot, which was also Wednesday’s low, and began to rally. At 12:30 FED governor Brainard’s speech: http://www.federalreserve.gov/newsevents/speech/brainard20160603a.htm. The market rallied to SPX 2103 by 3pm, and then pulled back to end the week at 2099.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were -0.55%. Bonds gained 37 ticks, Crude slid 35 cents, Gold rallied $32, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Today the Q2 GDP est. was reported unchanged at +2.5%.
The market opened lower today for the third day in a row. It made the low for the day in the first hour of trading, and then rallied throughout the day for the third day in a row. The 2085 pivot has provided support all week with resistance just above SPX 2100, for a narrow 20 point range on the entire week. We will cover what this implies short, medium and long term in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: neutral