SHORT TERM: higher open/close in quiet trading, DOW +40
Overnight the Asian markets lost 0.5%. Europe opened lower but finished mixed. US index futures were higher overnight, and the SPX opened two points above Friday’s SPX 2058 close. After a retest of SPX 2058 in the opening minutes the market rallied to 2267 by 11am. Then after a pullback to SPX 2260 by noon, the market bounced to 2266 just past 2pm, then dropped to 2259 by 3:30. At 1:30 a speech from FED chair Yellen was released: https://www.federalreserve.gov/newsevents/speech/yellen20161219a.htm. A bounce into the close ended the day at SPX 2263.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ gained 0.40%. Bonds gained 16 ticks, Crude slipped 15 cents, Gold added $5, and the USD was higher. Medium term support remains at the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. No economic reports until Wednesday.
The market opened higher today, rallied to SPX 2267, then pulled back and remained in the 2258-2267 range for the rest of the day. The short term action still looks choppy since the uptrend high at SPX 2278. The market does not appear to have any conviction to go higher or lower. It appears to be seeking a catalyst before the holiday weekend. Short term support remains at SPX 2248 and the SPX 2230’s, with resistance at the 2270 and 2286 pivots. Short term momentum touched overbought at today’s high then backed off to neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend