SHORT TERM: pullback ends choppy week, DOW -131
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.3%. US index futures were lower overnight, and the market opened 5 points below yesterday’s SPX 2177 close. The market continued to decline throughout the day, with only 3 point bounces, until it hit SPX 2164 at 2pm. Then after a bounce to SPX 2171 by 3:30 the market pulled back again to end the week at 2165.
For the day the SPX/DOW lost 0.65%, and the NDX/NAZ lost 0.65%. Bonds gained 4 ticks, Crude dropped $1.60, Gold added $1, and the USD was higher. Medium term support drops to the 2131 and 2116 pivots, with resistance at the 2177 and 2212 pivots.
After yesterday’s gap up rally indicators left a short term negative divergence at the close. The market opened 5 points below yesterday’s close, declined to SPX 2164, hit short term oversold, and then bounced around into the close. Looks like a fairly normal pullback after a 40 point rally. Complete review, long, medium and short term in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend probably underway
LONG TERM: uptrend