SHORT TERM: market rebounds, DOW +108
Overnight the Asian markets gained 0.8%. Europe opened lower and lost 0.3%. US index futures were higher overnight. At 8:30 personal income (0.4% v 0.2%)/spending (0.3% v 0.4%) were reported higher, and PCE prices were reported higher: 0.1% v 0.1%. The market opened 5 points above Friday’s SPX 2169 close and continued to rally. Around noon the SPX hit 2183, then it drifted for the rest of the day to close at 2180.
For the day the SPX/DOW gained 0.55%, and the NDX/NAZ gained 0.20%. Bonds gained 18 ticks, Crude dropped 70 cents, Gold rose $2, and the USD was flat. Medium term support rises to the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Tomorrow: Case-Shiller at 9am, and consumer confidence at 10am.
The market opened higher today, rallied to SPX 2183 by noon, then went sideways for the rest of the day. The choppiness from SPX 2188, in the second week of August, continues. Since the uptrend began at SPX 1992 in late-June there have been three significant and similar pullbacks: 35 pts. in the beginning of July, 30 pts. in the beginning August, and recently 34 pts. from the 2194 all time high. The market will need to do something more substantial that 35 pts. on the downside to get the downtrend going. Until that happens the possibility of an uptrend extension exists. Short term support is at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Short term momentum hit overbought during today’s rally. Trade what is in front of you!
MEDIUM TERM: uptrend may have topped
LONG TERM: uptrend