SHORT TERM: pullback Tuesday, DOW -54
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.1%. US index futures were higher, then lower, overnight. At 9am Case-Shiller was reported higher: 5.1% v 5.0%, and the FHFA index was reported higher: 0.7% v 0.5%. The market opened 3 points lower than yesterday’s SPX 2151 close, dipped to 2146, then rallied to unchanged by 10am. At 10am consumer confidence was reported lower: 98.6 v 104.1. By 12:30 the market had pulled back to SPX 2142, and tried to rally. The rally fizzled out at SPX 2147 by 2pm, then the market drifted into a 2143 close.
For the day the SPX/DOW lost 0.35%, and the NDX/NAZ lost 0.45%. Bonds lost 1 tick, Crude dropped 70 cents, Gold gained $9, and the USD was lower. Medium term support remains at the 2131 and 2216 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: new home sales at 10am.
The market opened lower today, bounced to unchanged, and then headed even lower. We now observe another series of 5 overlapping waves, this time from the SPX 2115 low: 2149-2124-2148-2130-2155-2142. Still awaiting that elusive third wave. Quite an odd market with the NDX/NAZ near/at all time highs, and the SPX/DOW remaining in a 4% range below their all time highs. Growth is being bought, but the cyclicals are not. Short term support is at the 2131 and 2116 pivots, with resistance at the mid-2140’s and the low-2150’s. Short term momentum declined to oversold from yesterday’s quite overbought condition. Trade what’s in front of you!
MEDIUM TERM: downtrend may have bottomed
LONG TERM: uptrend