SHORT TERM: higher open on OPEC deal, DOW +2
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.3%. US index futures were higher overnight. At 8:15 the ADP was reported higher: 216K v 147K, at 8:30 personal income (0.6% v 0.3%)/spending (0.3% v 0.5%) were reported higher and the PCE was reported higher (0.1% v 0.1%). The market opened 5 points above yesterday’s SPX 2205 close, rallied up to a new high at 2214 in the opening minutes, and then started to pullback. At 9:45 the Chicago PMI was reported higher: 57.6 v 50.6, then at 10am pending home sales were reported higher: 0.1% v 1.5%. By 10:30 the SPX had pulled back to unchanged at 2205. Then after rally to SPX 2211 by 11:30, the market headed lower again. At 2pm the FED released its beige book: https://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201611.htm. Heading into the close the SPX hit 2199, and ended the day there.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 1.15%. Bonds dropped 21 ticks, Crude rallied $3.90, Gold slid $15, 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 at 8:30, then construction spending, auto sales and ISM manufacturing at 10am.
With OPEC agreeing on a cut in production energy stocks rallied, carrying the SPX/DOW with them into the open. Soon after the open the SPX/DOW made new highs, the SPX by one point, while the NDX/NAZ did not and started to pullback. For most of the morning the SPX/DOW tried to rally, while the NDX/NAZ was declining. Then in the afternoon they all declined together. At today’s lows the NDX had dropped below the low of Monday a week ago. The NDX/NAZ look like they are in a wave 2 pullback. Waiting on the SPX/DOW to follow. Short term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2270 pivots. Short term momentum put in another negative divergence at today’s high. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend