SHORT TERM: another gap down opening, DOW -89
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.9%. US index futures were lower overnight, and at 8:30 the CPI was reported higher: 0.3% v 0.1%. The market gapped down at the open to SPX 2140, then declined to 2132 just before 10am. The market had closed at SPX 2147 on Thursday. At 10am consumer sentiment was reported unchanged at 89.8. The market then rallied back to the opening level at SPX 2140 just before 11am. After that the market declined to SPX 2131 by 1:30. Then another trip higher, this time to SPX 2142, in the closing hour to end the week at 2139.
For the day the SPX/DOW lost 0.40%, and the NDX/NAZ lost 0.05%. Bonds gained 2 ticks, Crude dropped 75 cents, Gold slipped $3, and the USD was higher. Medium term support remains at the 2131 and 2116 pivots, with resistance at the 2177 and 2212 pivots.
The market gapped down at the open again today, traded down to SPX 2131, then stayed within a 2131-2142 trading range for the rest of the day. Yesterday we noted that the 2131 pivot needed to provide support to suggest the downtrend had ended, and a new uptrend is underway. For today it held. More on this and some adjustments to the market probabilities in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend may be underway
LONG TERM: uptrend