SHORT TERM: market opens lower, DOW -37
Overnight the Asian markets gained 0.9%. Europe opened lower and lost 0.1%. US index futures were flat to lower overnight. At 8:30 the PPI was reported lower: -0.4% v 0.5%, and Retail sales were reported flat: 0.0% v 0.6%. The market opened six points below yesterday’s SPX 2186 close and then started to rebound. At 10am Consumer sentiment was reported higher: 90.4 v 90.0, and Business inventories were reported higher: 0.2% v 0.2%. At 11:30 the SPX hit 2186 and then started to pullback again. By 1pm the SPX had hit 2179, and then bounced into the close to end the week at 2184.
For the day the SPX/DOW lost 0.15%, and the NDX/NAZ gained 0.10%. Bonds gained 17 ticks, Crude rallied $1.20, Gold slipped $3, 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 estimate was lowered: 3.5% v 3.7%.
The market opened lower today, bounced to SPX 2186, then hit 2179 before bouncing into the close. Not much has changed with the short term count. Thus far: Minor 1 2188, Minor 2 2172, and Minor 3 underway. Short term momentum went from overbought at yesterday’s SPX 2188 to nearly oversold at today’s 2179 low. Short term resistance and support remains the same. A few new things to cover in this weekend’s update. Best to your weekend!