SHORT TERM: new high then pullback, DOW +4
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 1.5%. US index futures were higher overnight. The market opened one point above yesterday’s SPX 2181 close, and continued to move higher. At 10am wholesale inventories were reported higher: 0.3% v 0.1%. Around 11:30 the SPX hit 2188 and then began to pullback. At 2:30 the market hit low at SPX 2179, then bounced to close at 2182.
For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.25%. Bonds gained 10 ticks, Crude slipped 25 cents, Gold gained $5, and the USD was lower. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Today the Q3 GDP est. was lowered to 3.7% v 3.8%, but still over 1% above consensus. Tomorrow: the budget deficit at 2pm.
The market opened slightly higher today, made a new high at SPX 2188, then had its largest pullback since the 2148 low. The pullback so far is only 9 points. With the NYSE making a new uptrend high today and not the DOW, the same status posted yesterday still applies. Uptrend will not likely end until the DOW makes new highs. Also, this pullback can be a Minor wave 2 if it continues into the 15-20 point range. Short term support is at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Short term momentum declined after displaying a negative divergence at the highs. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend