SHORT TERM: lower open then rebound, DOW -20
Overnight the Asian markets lost 0.6%. Europe opened lower and lost 1.1%. US index futures were lower overnight, and at 8:30 weekly jobless claims were reported lower: 264K v 267K. The market opened 7 points below yesterday’s SPX 2119 close. After dipping to SPX 2110, the market bounced to 2113 by 11am. Just after noon the market hit SPX 2108 and started to rally. The rally continued until 3:30 when the SPX hit 2118. Then the market pulled back to SPX 2115 to end the day.
For the day the SPX/DOW lost 0.15%, and the NDX/NAZ lost 0.25%. Bonds gained 6 ticks, Crude slid 70 cents, Gold rose $7, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: consumer sentiment at 10am, and the Treasury deficit at 2pm.
The market opened lower today, pulled back to SPX 2108, and then rebounded. The pullback from yesterday’s SPX 2121 is small, so far, but a notable pullback nonetheless. Should the market dip below SPX 2100, then a retest of the 2085 pivot is possible. If not, we would expect the market to be making new uptrend highs soon. Short term support is at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Short term momentum declined to oversold and then rebounded past neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: neutral