SHORT TERM: pullback continues, DOW -57
Overnight the Asian markets gained 0.6%. Europe opened lower but gained 0.4%. US index futures were higher overnight, and the market opened at SPX 2254 then immediately started to pullback. At 9:45 the Chicago PMI was reported lower: 54.6 v 57.6. The pullback continued until 10:30 when the SPX hit 2242. Then after a bounce to SPX 2248 by noon, the market headed even lower. At 3pm the SPX hit 2234, and then bounced to close the week at 2239.
For the day the SPX/DOW lost 0.40%, and the NDX/NAZ lost 1.00%. Bonds gained 6 ticks, Crude was flat, Gold dropped $7, and the USD was lower. Medium term support remains at the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Today the WLEI was reported higher: 61.8% v 61.3%, and the Q4 GDP estimate remained unchanged at 2.5%.
The market opened higher today, following rallies in Asia/Europe, but the few US traders not on holiday had their own agenda. Within the first half hour of trading the SPX broke yesterday’s 2245 low, and then continued lower for most of the day. At today’s low, SPX 2234, the market has already pulled back 44 points from the uptrend high. And nearly all of the decline, spare 4 points, has occurred from Tuesday’s opening high of SPX 2274 on light volume. Should be an interesting year end weekly update. Happy New Year!
MEDIUM TERM: uptrend
LONG TERM: uptrend