SHORT TERM: consolidation day, DOW +24
Overnight the Asian markets gained 0.4%. Europe opened higher but lost 0.1%. US index futures were flat to higher overnight. At 8:30 Export prices were reported higher: +0.5% v +1.0%, but Import prices were lower: -0.3% v +0.3%. The market opened four points above yesterday’s SPX 2152 close, and immediately began to pullback. Just before noon the SPX hit its low for the day at 2146. After that it started to drift its way higher. At 2pm: http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201607.htm, and another Budget surplus was reported: $6.3B v $50.5B. In the last hour of trading the SPX hit 2154, then dipped to close at 2152.
For the day the SPX/DOW gained 0.05%, and the NDX/NAZ lost 0.30%. Bonds gained 8 ticks, Crude dropped $1.80, Gold rose $12, and the USD was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: weekly Jobless claims and the PPI at 8:30.
The market opened the day at a new high, pulled back 10 points, and then drifted up for the rest of the day. It appears without the DAX moving higher (-0.3%) the SPX consolidated for the day. Nothing has changed with the count. We still have three waves up from SPX 1992, with the third wave subdividing. The short term negative divergence that had been forming kicked in to the downside as momentum declined, but only reached neutral before ticking higher. It appears the next upside target is the 2177 pivot, with support at the 2131 pivot. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend