SHORT TERM: market drifts higher, DOW +46
Overnight the Asian markets gained 0.7%. Europe opened higher but lost 0.3%. US index futures were higher overnight, and the market opened 4 points above Friday’s SPX 2180 close. Right after the open the market started to pullback. At 10am ISM services were reported lower: 51.4 v 55.5. Around 10:30 the market hit a low at SPX 2175 and started to rebound. By 12:30 the SPX hit last week’s high at 2185. Then it entered a 3-point trading range into the last hour of trading. Then moved higher to close at SPX 2186.
For the day the SPX/DOW gained 0.25%, and the NDX/NAZ gained 0.55%. Bonds gained 23 ticks, Crude added 40 cents, Gold rallied $22, and the USD was lower. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Tomorrow: the FED’s beige book at 2pm.
The market opened higher today, pullback back, and then hit SPX 2186 at the close. Not much has changed from Friday’s close and the weekend update. The market still has a potential pullback low at SPX 2157, with a potential uptrend extension underway. Potential the key word. With a two month 200-point uptrend already in the books it seems a bit odd to just go sideways for a few weeks and then move even higher. But it has been that kind of market. Short term support is at the 2177 pivot and SPX 2157, with resistance at SPX 2194 and the 2212 pivot. Short term momentum is displaying a potential negative divergence, but not much of a pullback so far. Best to your trading the FED’s beige book!
MEDIUM TERM: uptrend stuck in trading range
LONG TERM: uptrend