SHORT TERM: consolidation day, DOW -14
Overnight the Asian markets gained 1.4%. Europe opened higher and gained 0.3%. US index futures were higher overnight, but the market opened only one point above Friday’s SPX 2183 close. After ticking up another point in the opening minutes the market started to pullback. At 10:30 the SPX hit 2179, bounced to 2183 by 11:30, then headed lower in the afternoon. At 2:30 the SPX hit 2178, then bounced to close at 2181.
For the day the SPX/DOW lost 0.10%, and the NDX/NAZ lost 0.15%. Bonds lost 5 ticks, Crude rose $1.05, Gold slipped $1, and the USD was higher. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Tomorrow: wholesale inventories at 10am.
The market opened slightly higher today, posted a new high at SPX 2185, then pulled back for the rest of the day. At the high there was a slight negative divergence, and momentum has dropped to neutral. Thus far the pullback is only seven points. Should it continue lower, 15-20 points has been the level of a Minor wave. It is unlikely the uptrend ended at today’s high since neither the DOW nor the NYSE have made a new uptrend high with the recent rally. Short term support is at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend