SHORT TERM: market pulls back again, DOW -49
Overnight the Asian markets gained 0.8%. Europe opened higher and gained 0.5%. US index futures were flat overnight, and at 9am Case-Shiller was reported higher: 5.1% v 5.2%. The market opened at the high of the day, SPX 2182, 2 points above yesterday’s close, and immediately began to pullback. At 10am consumer confidence was reported higher: 101.1 v 97.3. Around 10:30 the SPX hit 2173, bounced to 2177 by 12:30, then headed lower again. At 2:30 the SPX hit 2170, then bounced to close at 2176.
For the day the SPX/DOW lost 0.20%, and the NDX/NAZ lost 0.25%. Bonds lost 3 ticks, Crude slid 55 cents, Gold dropped $12, and the USD was higher. Medium term support drops again to the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: the ADP index at 8:15, the Chicago PMI at 9:45, then pending home sales at 10am.
After Monday’s rally to SPX 2183, from Friday’s 2160 low, the market pulled back today remaining in the 2160-2194 range for yet another day. While we have been expecting a downtrend to be underway, the market has done nothing but trade within a 1.5% range for weeks. Several possible short term counts in play, but nothing worth mentioning until the range is broken one way or the other. The weekend update downtrend targets still apply while we await the outcome of this sideways activity. Short term support is at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum dropped to oversold after hitting overbought on yesterdays rally, then bounced. Trade what is in front of you!
MEDIUM TERM: uptrend stuck in a trading range
LONG TERM: uptrend