SHORT TERM: pullback then rebound, DOW -53
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.4%. US index futures were relatively flat overnight, and at 8:15 the ADP was reported lower: 177K v 179K. The market opened 4 points lower than yesterday’s SPX 2174 close, ticked down to 2170, then bounced to 2173 by 10am. At 9:45 the Chicago PMI was reported lower: 51.5 v 55.8, and at 10am pending home sales were reported higher: 1.3% v 0.2%. The market then pulled back to SPX 2161 by 12:30. After that the market rebounded into a 2171 close.
For the day the SPX/DOW lost 0.25%, and the NDX/NAZ lost 0.15%. Bonds lost 4 ticks, Crude dropped $1.55, Gold slipped $2, and the USD was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: weekly jobless claims at 8:30, then construction spending, auto sales, and ISM at 10am.
The market opened lower today, dropped down to SPX 2161 by midday, then rebounded for the rest of the day. While the market has just declined from SPX 2183 Monday to SPX 2161 Wednesday, it still remains in the recent 2160-2194 trading range. In fact the entire trading range for the month of August was SPX 2148 – 2194. Barely above 2%. Still waiting for a break either way. Short term support is at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum was quite oversold at today’s lows, then rebounded to neutral. Best to your trading!
MEDIUM TERM: uptrend still range bound
LONG TERM: uptrend