SHORT TERM: higher open then choppy session, DOW -49
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 1.1%. US index futures were higher overnight. At 9am the FHFA housing index was reported higher: +0.2% v +0.7%. Then at 9:30 FED vice chair Fischer’s speech was released: http://www.federalreserve.gov/newsevents/speech/fischer20160622a.htm. The market opened three points above yesterday’s SPX 2089 close and continued to rally. At 10am Existing home sales were reported higher: 5.53M v 5.45M. Around 11am the SPX hit 2100 and then started to pullback. The pullback continued throughout the afternoon and the market closed at SPX 2085, just above the 2084 low.
For the day the SPX/DOW lost 0.25%, the NDX/NAZ lost 0.20%. Bonds gained 4 ticks, Crude dropped 70 cents, Gold added $1, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: weekly jobless claims at 8:39, then new home sales at 10am.
The market opened higher today, rallied up to SPX 2100, and just like Monday pulled back for the rest of the day. The SPX has remained in about a 1% trading range, despite opening higher all three days this week. UK, EU vote tomorrow. We continue to count three waves up from last week’s SPX 2050 low: 2080-2063-2101. Today’s decline could have been the fourth wave, unless it drops below SPX 2080. Market remains within the important SPX 2026-2121 range, and this week’s upper range ahead of the vote. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2121 and the 2131 pivot. Short term momentum ended the day oversold. Best to your Brexit trading!
MEDIUM TERM: uptrend
LONG TERM: neutral