SHORT TERM: consolidation day, DOW -22
Overnight the Asian markets lost 1.1%. Europe opened lower and lost 0.4%. US index futures were relatively flat overnight. At 8:30 monthly payrolls were reported higher: 178K v 161K, and the unemployment rate hit a 9 year low: 4.6% v 4.9%. The market opened unchanged at SPX 2191, then rallied to 2198 by 11:30. After that the market started to pullback. Around 2pm the SPX hit 2188, then bounced to close at 2192.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.10%. Bonds rallied 15 ticks, Crude rose 50 cents, Gold added $6, and the USD was lower. Medium term support remains unchanged at the 2177 and 2131 pivots, with resistance at the 2212 and 2270 pivots. This week the Q4 GDP was lowered to 2.9% v 3.6%, and today the WLEI was reported higher: 58.3% v 57.2%.
The market opened unchanged today on a good payrolls report. Rallied to just under SPX 2200 and then pulled back for the rest of the day. Yesterday the NDX/NAZ led the SPX lower, while the DOW rose. Today the NDX/NAZ/SPX rose, while the DOW was lower. It still appears Minute wave ii is underway with support likely to arrive within the 2177 pivot range (2170-2184). Reviewed the recent decline in the Bond market, compared it to similar declines in the recent past, and the results will be reported in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: uptrend