SHORT TERM: higher open then rally fades, DOW -23
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.8%. US index futures were higher overnight. At 8:15 ADP was reported lower: 172K v 173K, then at 8:30 weekly Jobless claims were reported lower: 254K v 268K. The market opened four points above yesterday’s SPX 2100 close, rallied to Friday’s 2109 high, and then began to pullback by 10am. The pullback continued until 3pm when the SPX hit 2089. Then a rally into the close ended the day at SPX 2098.
For the day the SPX/DOW lost 0.10%, and the NDX/NAZ gained 0.35%. Bonds slipped 1 tick, Crude dropped $2.25, Gold dipped $5, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2177 pivots. Tomorrow: monthly Payrolls at 8:30 (est. +180K), then Consumer credit at 3pm.
The market opened higher today, rallied back to Friday’s SPX 2109 high, then pulled back for the rest of the day before rallying into the close. Looks like an overhead declining trend line has formed: SPX 2121 uptrend high, SPX 2113 pre-Brexit high, and SPX 2109 post-Brexit high. The rally from yesterday’s SPX 2074 low was not able to break through that resistance today when hitting SPX 2109. SPX 2100+ continues to be formidable. Short term support at the 2085 and 2070 pivots, with resistance at SPX 2111 and SPX 2121. Short term momentum declined after getting quite overbought. Best to your trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: neutral