SHORT TERM: pullback continues, DOW -133
Overnight the Asian markets lost 2.2%. Europe opened lower and lost 1.6%. US index futures were lower overnight, and the market opened at SPX 2089 seven points below Friday’s close. In the opening minutes the SPX ticked down to 2088, then rallied to 2098 by 10:30. After that it headed even lower. Heading into the close the SPX hit 2078, then bounced to close at 2079.
For the day the SPX/DOW lost 0.80%, and the NDX/NAZ lost 0.90%. Bonds gained 9 ticks, Crude slid 55 cents, Gold rose $9, and the USD was lower. Medium term support drops to the 2070 and 2043 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: export/import prices and retail sales at 8:30, business inventories at 10am, and the FED starts its FOMC meeting.
The market opened lower today, as foreign markets sold off. Then after turning slightly positive the market headed even lower after Europe closed. Thus far we are still counting three waves down from the SPX 2121 high: 2108-2118-2078, during this largest pullback since the uptrend began at SPX 2026. Currently we observe a double positive divergence short term, but no bounces yet, and an oversold daily RSI. Normally this should be enough for a reversal to the upside soon. Short term support drops to the 2070 and 2043 pivots, with resistance at the 2085 pivot and SPX 2121. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: neutral