SHORT TERM: higher open then sideways, DOW +11
Overnight Asian markets gained 0.4%. Europe opened higher and gained 0.1%. US index futures were slightly higher overnight, and the SPX opened three points above Friday’s SPX 2264 close. At 9am Case-Shiller was reported higher: +5.6% v +5.4%. In the opening minutes the SPX hit 2274 and then began to pullback. At 10am consumer confidence was reported higher: 113.7 v 109.4. The pullback continued throughout the day until the SPX hit 2268 in the closing minutes, then bounced to close at 2269.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.50%. Bonds lost 6 ticks, Crude rallied 80 cents, Gold rose $6, and the USD was higher. Medium term support remains at the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Tomorrow: pending home sales at 10am.
The market opened higher today, rallied to its best level since December 14th – the day the FED raised rates, then drifted lower for the rest of the day. The larger wave pattern after the FED raised rates and the market hit SPX 2248 has been: 2272-2254-2273-2256-2274. This can be a number of potential short term patterns, i.e. triangle, complex flat, etc. Not much to add until the market breaks out one way or the other. Short term support is at SPX 2254 and SPX 2248, with resistance at the 2270 and 2286 pivots. Short term momentum spiked to quite overbought at the open, then drifted down to near neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend