SHORT TERM: pullback Monday, DOW +40
Overnight the Asian markets lost 0.6%. Europe opened lower and lost 0.4%. US index futures spiked early with the initial rally in Crude, but then declined overnight into the open. At the open the SPX was 2 points lower than Friday’s 2260 close. Then after dipping 1 point further in the opening minutes, rallied to a new high at SPX 2264 by 10am. After that it was pullback mode for the rest of the day. By noon the SPX hit 2252. At 2pm the budget deficit was reported higher: -$137.0B v -$56.8B. Heading into the close the SPX hit 2258 and then closed at 2257.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.60%. Bonds slipped 1 tick, Crude rallied 85 cents, Gold rose $4, and the USD was lower. Medium term support remains at the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Tomorrow: export/import prices at 8:30 and the FED starts its FOMC meeting.
The market opened slightly lower today, bounced around a bit, then eked at a new all time high at SPX 2264. After that the market pulled back for the rest of the day, as Friday’s negative divergence had an impact. We can now count 5 waves up from the Minute ii low at SPX 2187: 2198-2188-2252-2243-2264 with a sixth wave underway. No overlaps yet, and not expecting a Minute iii high yet either. Short term support now at SPX 2252 and SPX 2243, with resistance at the 2270 and 2286 pivots. Short term momentum declined to neutral during the pullback. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend