SHORT TERM: choppy activity continues, DOW +99
Overnight the Asian markets gained 0.7%. Europe opened lower but gained 0.3%. US index futures were relatively flat overnight and the SPX opened 1 point below yesterday’s 2269 close. Right after the open the market rose to SPX 2275 just before 11am. Then the market started to selloff when Trump made some negative comments on drug prices during his press conference. By 11:30 the SPX hit 2261. Then after a rebound to SPX 2273 around noon, a retest of 2261 occurred at 1:30. Then the market rallied into a SPX 2275 close.
For the day the SPX/DOW gained 0.40%, and the NDX/NAZ gained 0.25%. Bonds added 2 ticks, Crude rose $1.45, Gold added $4, and the USD was lower. Medium term support rises to the 2270 and 2212 pivots, with resistance at the 2286 and 2321 pivots. Tomorrow: export/import prices and weekly jobless claims at 8:30, then the budget deficit at 2pm.
The market opened flat today, bounced, dropped to SPX 2261, bounced, and then retested 2261 before rising in the afternoon. As noted yesterday’s the price action in the market has remained choppy for some time now, as the DOW has struggled with 20K and the SPX with the 2270/2286 pivots. Yesterday looked like it could have been a pivotal day, with the sudden SPX reversal after hitting 2279. Today the choppiness started displaying a negative slant, as the highs/lows are becoming lower and lower. From last week’s SPX 2282 all-time high the waves have slanted downward: 2265-2279-2261-2273-2261-2275. Today we updated the hourly/daily charts to display a possible uptrend high at SPX 2282, and noted a negative divergence in the daily MACD which is similar to previous uptrend highs. Unless the market can manage to clear the 2286 pivot, a downtrend could be underway. Short term support is now at the 2270 pivot and SPX 2261, with resistance still at the 2286 and 2321 pivots. Short term momentum hit oversold at today’s low then bounced to nearly overbought. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: uptrend