SHORT TERM: lower open then sideways, DOW -58
Overnight the Asian markets gained 0.7%. Europe opened higher and gained 1.0%. US index futures, however, were lower overnight. At 8:30 Housing starts were reported lower: 1164K v 1172K, and Building permits were reported higher: 1138K v 1116K. The market opened 4 points below yesterday’s SPX 2078 close and continued lower. With one 5 point bounce along the way the market hit SPX 2063 by 11:30. Then it started to rise. The rally continued until 2pm when the SPX hit 2075. Then the market dipped to close at SPX 2071.
For the day the SPX/DOW lost 0.35%, and the NDX/NAZ lost 1.00%. Bonds lost 12 ticks, Crude gained $2.00, Gold rallied $16, and the USD was lower. Medium term support remains at the 2070 and 2043 pivots, with resistance at the 2085 and 2131 pivots. Today the Q2 GDP est. remained unchanged at +2.8%.
The market opened lower today, on options expiration, despite the rally in Asia/Europe. The pullback continued until 11:30 when the SPX hit 2063. Then a rally to SPX 2075 ended the range for the day as the market closed at 2071. Ever since last Friday’s gap down opening the market has had a difficult time sustaining any type of rally. Possibly the Brexit vote this coming Thursday is keeping this market indecisive. Overall market remains in the SPX 2026-2121 range, as it has for the past 2.5 months. Best to your weekend!
MEDIUM TERM: uptrend under pressure
LONG TERM: neutral