SHORT TERM: flat open quiet trading, DOW +41
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.3%. US index futures were lower overnight. At 8:30 housing starts were reported lower: 1047K v 1142K, but building permits were reported higher: 1225K v 1139K. The market opened 2 points above yesterday’s SPX 2140 close, and then began to pullback. At 10am the SPX hit 2138, made the low for the day, and started to work its way higher. By 2pm the SPX had hit 2148 when the FED’s beige book was released. Then the market drifted down to a SPX 2144 close.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ ended mixed. Bonds gained 2 ticks, Crude rallied $1.00, Gold rose $7, and the USD was higher. Medium term support remains at the 2131 and 2116 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: the ECB meets, weekly jobless claims and the Philly FED at 8:30, then existing homes sales and leading indicators at 10am. Today the Q3 GDP est. was raised to +2.0% v +1.9%.
The market opened slightly higher today, dipped, and then took out yesterday’s SPX 2144 high on its way to 2148. Thus far from the SPX 2115 low we observe one wave up to 2149, a pullback to 2124, now a rally to 2148 thus far. Not a whole lot of upside activity yet, as there is several overhead resistance areas to overcome first. Maybe the ECB, options expiration and earnings will be the next catalysts. Short term support is at the 2131 and 2116 pivots, with resistance at the low-2150’s and mid-2160’s. Short term momentum is displaying a negative divergence but not much of a pullback thus far. Trade what’s in front of you!
MEDIUM TERM: downtrend may have bottomed
LONG TERM: uptrend