SHORT TERM: pullback resumes, DOW -78
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.1%. US index futures were about unchanged overnight. The market opened one point below Friday’s SPX 2175 close, and continued lower. The market declined, with only two point bounces, to SPX 2162 by 12:30. Then it tried to rally. The choppy rally continued throughout the afternoon as the market rallied back to SPX 2168 at the close.
For the day the SPX/DOW lost 0.35%, and the NDX/NAZ lost 0.05%. Bonds slipped 4 ticks, Crude dropped $1.10, Gold slid $9, and the USD was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: Case-Shiller at 9am, then Consumer confidence and New home sales at 10am.
The market opened lower to start the week. After coming within one point of matching the all time high at SPX 2176 on Friday, the market declined today to within two points of Thursday’s SPX 2160 low. The choppy activity that started last Thursday, 2160-2175-2162, still looks like a Minor wave pullback within Int. wave three. Unless the market breaks much lower it looks like that is the best possibility at this time. Short term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum hit oversold and rebounded to neutral during the day. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend