SHORT TERM: trading range continues, DOW -16
Overnight the Asian markets lost 0.2%. Europe opened higher but lost 0.5%. US index futures were higher overnight, and at 8:30 weekly jobless claims were reported higher: 266K v 253K. The market opened one point below yesterday’s SPX 2167 close then began to pullback. In the opening minutes the SPX hit 2160, then rallied to 2168 by 10am, before revisiting 2160 by 11am. After that the market started to drift higher. In the last hour of trading the SPX hit 2173, then dipped to close at 2170.
For the day the SPX/DOW were mixed, and the NDX/NAZ rose 0.35%. Bonds gained 3 ticks, Crude dropped 85 cents, Gold slid $4, and the USD was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Today the Q2 GDP est. was lowered to 1.8% v 2.3%. Tomorrow the BOJ announces their stimulus package, Q2 GDP will be reported at 8:30, the Chicago PMI at 9:45, then Consumer sentiment at 10am.
The market opened slightly lower today then pulled back to remain in the 20 point range for the eleventh trading day in a row. Thus far the entire sequence appears to look like a double three, taking the form of a Minor wave 4 flat. Apparently this market has been waiting for some sort of catalyst to clear the range. Maybe the BOJ or Q2 GDP will be it. Short term support is at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum has been bouncing between overbought and oversold all week with no net progress. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: uptrend