SHORT TERM: lower open on pullback Tuesday, DOW -59
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.7%. US index futures were lower yesterday, and overnight, and at 8:30 the NY FED was reported lower: 6.5 v 9.0. The market opened 7 points below Friday’s SPX 2275 close, ticked down to 2265 by 10am, then tried to rally. After hitting SPX 2272 by 10:30 the market went into a 4 point trading range, and hit 2272 again by 1:30. After that it headed even lower. Around 3pm the SPX hit 2263, then bounced to close at 2268.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.45%. Bonds gained 16 ticks, Crude added 15 cents, Gold rallied $17, and the USD was lower. Medium term support drops again to the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Tomorrow: the CPI at 8:30, industrial production (est. 0.7%) at 9:15, the NAHB at 10am, the FED’s beige book at 2pm, then a speech from FED chair Yellen at 3pm. Full day!
The market opened lower to start the holiday shortened options expiration week. After hitting SPX 2265, it bounced to 2272, then hit 2263 just before a 2269 close. Last week’s entire trading range, SPX 2254-2279, which occurred within 24 hours, has already been retraced 61.8% at today’s low. Market movement continues to look like choppy corrective activity. Short term support drops back to SPX 2254 and SPX 2245, with resistance at the 2270 and 2286 pivots. Short term momentum ended the day with a slight positive divergence. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: uptrend