SHORT TERM: consolidation day, DOW -19
Overnight the Asian markets ended mixed. Europe opened lower and lost 0.5%. US index futures were higher overnight. At 8:30 personal income (0.3% v 0.2%)/spending (0.5% v 0.0%) was reported higher, and the PCE was reported higher: 0.1% v 0.2%. The market opened 5 points above Friday’s SPX 2126 close, then dipped back to 2126 by 10:30. At 9:45 the Chicago PMI was reported lower: 50.6 v 54.2. After retesting Friday’s close the market rallied to SPX 2133 by 11:30. After that it stayed in the SPX 2126-33 range for the rest of the day, closing at 2126.
For the day the SPX/DOW lost 0.15%, and the NDX/NAZ lost 0.05%. Bonds gained 4 ticks, Crude dropped $2.05, Gold added $3, and the USD was higher. Medium term support remains at the 2116 and 2085 pivots, with resistance at the 2131 and 2177 pivots. Tomorrow: ISM, construction sales, and Auto sales by 10am.
Quite day after Friday’s FBI-probe selloff. The market opened high, dropped to unchanged, moved a bit higher, than closed unchanged. With the NAZ joining the SPX/DOW in downtrends, it appears there is some more downside ahead. Could be a bit moderate to the 2116 pivot or around SPX 2100, or a bit lower to the 2085 or 2070 pivots. Market rallied 14 points higher off Friday’s positive divergence, and closed somewhat weak. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend