SHORT TERM: pullback continues, DOW -66
Overnight the Asian markets ended mixed. Europe opened lower but gained 0.4%. US index futures were lower overnight, and at 9am FHFA prices were reported higher: 0.2% v 0.2%. The market opened three points below yesterday’s SPX 2187 close, ticked up to 2187, then started drifting lower. At 10am Existing home sales were reported lower: 5.39M v 5.57M. The market continued to decline throughout the day, except for a four point bounce during midday, and hit SPX 2171 around 3:30. Then a bounce into the close ended the day at SPX 2175.
For the day the SPX/DOW lost 0.45%, and the NDX/NAZ lost 0.75%. Bonds ended flat, Crude dropped $1.30, Gold slid $14, and the USD was higher. Medium term support slips to the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: weekly jobless claims and durable goods orders at 8:30.
The market opened lower today following yesterday’s small pullback, bounced to unchanged, and then declined for most of the day. We continue to observe a lot of choppy activity since the wave iv low at SPX 2148. Three waves up to SPX 2194, a decline to 2169, three waves to 2193, and now another decline. It all looks corrective after a two month uptrend, and a downtrend may be underway. A drop back to SPX 2148 would confirm. Short term support drops to the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum was quite oversold at the close. Trade what is in front of you!
MEDIUM TERM: uptrend may have topped
LONG TERM: uptrend