SHORT TERM: marginal new all time high, DOW -24
Overnight the Asian markets lost 0.3%. Europe opened higher and gained 0.3%. US index futures were lower overnight. At 8:30 Q2 GDP was reported lower than expected, but higher than Q1: +1.2% v +1.1%. The market opened two points below yesterday’s SPX 2170 close, then pulled back to 2163 by 10am. At 9:45 the Chicago PMI was reported lower: 55.8 v 56.8, then at 10am Consumer sentiment was reported lower: 90.0 v 93.5. Just after 10am the market started to rally. Just past noon the SPX hit a new high at 2177, then began to pullback. The pullback lasted the rest of the day as the SPX hit 2171 by 3pm, then bounced to 2174 to end the week.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.15%. Bonds gained 17 ticks, Crude rose 30 cents, Gold rallied $14, and the USD was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots.
The market opened lower today, remaining in the 2156-2176 two week range. After hitting a low at SPX 2163 the market rallied and exceeded the range by just one point. After hitting the OEW pivot at 2177, the market pulled back for the rest of the day. With today’s slightly higher high Minor 4 appears to have concluded at SPX 2059. Minor 5 is currently underway. We calculated some Fibonacci targets for Minor 5, and will present them in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: uptrend