SHORT TERM: flat opening then drift down day, DOW -52
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.7%. US index futures were lower overnight. At 8:30 the NY FED was reported lower: -6.8% v -2.0%. Then at 9:15 Industrial productions was reported higher: 0.1% v -0.4%, and Capacity Utilization was reported lower: 75.4% v 75.5%. The market opened unchanged at SPX 2133, slipped down to 2127 just before 10am, then rallied to 2135 by 10:30. The market then started drifting lower. At 12:15 FED vice chair Fischer’s speech was released: http://www.federalreserve.gov/newsevents/speech/fischer20161017a.htm. By 2pm the SPX hit 2124, and then started to rebound. The rebound was to SPX 2129 by 3pm, then the market drifted down to close at 2127.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.25%. Bonds gained 9 ticks, Crude slid 45 cents, Gold added $3, and the USD was lower. Medium term support is now at the 2116 and 2085 pivots, with resistance at the 2131 and 2177 pivots. Tomorrow: the CPI at 8:30, then the NAHB at 10am.
The market opened flat today, bounced around in a narrow range, then drifted lower for most of the day. At the low, SPX 2124, the market hit the exact lower end of the OEW 2131 pivot range. It then bounced 5 points before drifting sideways into the close. Not much to add to the weekend’s update. The pullback from SPX 2149 has now exceeded the 0.618% retracement level, but has yet to break the 2131 pivot range. Market seems to be looking for a upside catalyst. Short term support is at the 2116 pivot and 2100+, with resistance at the 2131 pivot and the SPX mid-2140’s. Short term momentum hit oversold at today’s low, then bounced. Trade what’s in front of you!
MEDIUM TERM: downtrend may have bottomed
LONG TERM: uptrend