SHORT TERM: market gaps down at open heads lower, DOW -120
Overnight the Asian markets lost 0.7%. Europe opened lower and lost 2.2%. US index futures followed Europe lower, and gapped down at the open to SPX 2102. The market had closed at SPX 2115 yesterday. By 10am the SPX slipped below 2100, hit 2097, and then tried to rally. Also at 10am consumer sentiment was reported lower: 94.3 v 94.7. After a half hour bounce to SPX 2104 the market head lower again. Just past 3pm the market hit SPX 2090, bounced to 2098, then closed at 2096.
For the day the SPX/DOW lost 0.80%, and the NDX/NAZ lost 1.20%. Bonds gained 13 ticks, Crude dropped $1.60, Gold rose $5, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Yesterday, Q2 GDP est. was reported unchanged at +2.5%.
The market gapped down at the open today for the first time since last Tuesday’s pullback to SPX 2085. In the opening half hour the market dropped below SPX 2100, stayed in a 7 point range for three hours, then broke lower into the 2085 pivot range. After hitting SPX 2090 the market bounced into the close. For those counting this decline we have three waves down: 2108-2118-2090. Short term support remains at the 2085 and 2070 pivots, with resistance now at SPX 2121 and the 2131 pivot. Short term momentum was quite oversold at the low. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: neutral