SHORT TERM: gap up opening then market stalls, DOW +18
Overnight the Asian markets lost o.2%. Europe opened higher and gained 0.7%. US index futures were higher overnight and the market gapped up to SPX 2192 at the open. The SPX had closed at 2183 yesterday. At 10am the SPX hit 2193, new home sales were reported higher: 645K v 592K, and the SPX hit 2193. Then the market started to pullback. The pullback continued throughout the day into a SPX 2187 close. Fairly quite after the open.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.25%. Bonds lost 1 tick, Crude rose 55 cents, Gold was flat, and the USD was higher. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Tomorrow: FHFA housing prices at 9am and Existing home sales at 1oam.
The market gapped up at the open for the first time since August 11th. After the opening the market ticked up a point and then began to pullback. The August 11th gap up led to the SPX 2194 high two days later. It is possible the ending diagonal fifth wave scenario is underway. If correct we have a possible scenario for the five abcde waves: 2194-2169-2197-2183-2200. Thus far only 2194 and 2169 have completed. Short term support is at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Short term momentum was quite overbought at the open then eased back to neutral. Best to your trading!