SHORT TERM: pullback/consolidation, DOW -76
Overnight the Asian markets gained 0.1%. Europe opened lower and lost 0.1%. US index futures were lower overnight, and the SPX opened 3 points below Friday’s 2277 close. In the opening minutes the SPX dropped to 2269, then rallied to 2275 by 11:30. Then it started to drift back down again. At 3pm consumer credit was reported higher: $25.0B v $16.0B. Heading into the close the SPX hit 2269 again and closed there.
For the day the SPX/DOW lost 0.35%, and the NDX/NAZ gained 0.30%. Bonds gained 12 ticks, Crude dropped $2.10, Gold rallied $9, and the USD was lower. Medium term support slips to the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Tomorrow: wholesale inventories at 10am.
The market opened lower today after Friday’s record close. Hit SPX 2269 in the opening minutes, bounced, remained slightly above that level for most of the day, then closed there. The 4% decline in Crude, which is similar to the first day of last week, pressured the SPX/DOW, while the NDX/NAZ made new all-time highs. Mixed market today. We continue to count three waves up from the recent SPX 2234 low: 2264-2245-2282, with a possible fourth underway. Hourly and daily counts posted this weekend remain unchanged. Short term support is at SPX 2245 and SPX 2234, with resistance at the 2270 and 2286 pivots. Short term momentum dropped from quite overbought to oversold today. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend