SHORT TERM: new high then pullback, DOW -28
Overnight the Asian markets gained 0.5%. Europe opened higher but lost 0.4%. US index futures were higher overnight, but started to pullback right after the DAX opened. The market opened unchanged at SPX 2174, pulled back to 2168, and then started to rally. At 10am ISM was reported lower: 52.6 v 53.2, and Construction spending was reported lower: -0.8% v -0.6%. Around 10:30 the SPX hit a new high at 2178 and then started to pullback again. The pullback continued until 12:30 when the SPX hit 2166. Then after a bounce to SPX 2172 by 2pm, the market dipped to 2167 by 3:30, then the market closed at 2171.
For the day the SPX/DOW lost 0.15%, and the NDX/NAZ gained 0.50%. Bonds lost 10 ticks, Crude dropped $1.60, Gold added $3, and the USD was higher. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: Personal income/spending and PCE at 8:30, then monthly Auto sales.
The market opened unchanged today, pulled back, then made a marginal new high at SPX 2178. After that it pulled back for the rest of the day. As noted over the weekend, the minimum target for Minor 5/Int. iii is SPX 2180 +/- 2 points. That was hit this morning. If Int. three has completed we would expect the SPX to drop to 2159 to confirm Int. iv is underway. Then support for Int. iv would be in the 2131 pivot range. If the market holds above SPX 2159 and starts making new highs. Then the recent action is only waves 1 and 2 of Minor wave 5. Either way still expecting higher prices before this uptrend ends. Short term support is at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum displayed another negative divergence at today’s new high. Trade what is in front of you!
MEDIUM TERM: uptrend
LONG TERM: uptrend