SHORT TERM: consolidation day, DOW -55
Overnight the Asian markets gained 0.3%. Europe opened lower and lost 0.7%. US index futures were lower overnight. At 8:30 the PPI was reported unchanged, then at 9:15 industrial production was also reported unchanged and capacity utilization was reported lower: 75.3% v 75.4%. The market opened 6 points below yesterday’s SPX 2180 close, dipped to 2173 by 10am, then bounced to 2179 by 10:30. At 10am the NAHB was reported unchanged at 63. The market then drifted lower until about 1:30 when the SPX hit 2172. After hitting that low it drifted higher into a SPX 2177 close.
For the day the SPX/DOW lost 0.20%, and the NDX/NAZ gained 0.45%. Bonds added 3 ticks, Crude slipped 35 cents, Gold slid $3, and the USD was higher. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2270 pivots. Tomorrow: weekly jobless claims, the CPI, housing starts, building permits and the Philly FED all at 8:30. At 10am FED chair Yellen gives the economic outlook report to congress.
The market opened lower today, went into a small seven point trading range, in what looks like a consolidation day after yesterday’s rally. With the FED chair reporting tomorrow and options expiration Thursday/Friday, traders appeared to be on hold today. Technically, if we count four waves up from SPX 2084/2085: 2147-2125-2182-2151/2152, we could count another four smaller waves up now: 2171-2156-2181-2172. This suggests the next rally, should 2172 hold, could top off the first wave up of this uptrend. This uptrend continues to impulse higher. Short term support is at the 2177 pivot and SPX 2151, with resistance at SPX 2194 and the 2212 pivot. Short term momentum dropped to about neutral during today’s pullback. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend