SHORT TERM: quiet sideways day, DOW -22
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.3%. US index futures were flat overnight. At 8:30 the CPI was reported higher: 0.3% v 0.2%, and at 9:15 industrial production was reported higher: 0.8% v -0.4%. The market opened 1 point above yesterday’s SPX 2268 close, then immediately dropped to yesterday’s 2263 low in the opening minutes. After that it started to drift higher. At 10am the NAHB was reported lower: 67 v 70. At 10:30 the SPX hit 2270, and started to drift lower. At 2pm the FED’s: https://www.federalreserve.gov/monetarypolicy/beigebook/default.htm. At 3pm https://www.federalreserve.gov/newsevents/speech/yellen20170118a.htm. After hitting SPX 2266 by 1pm the market rallied to 2272 at the close.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.25%. Bonds lost 26 ticks, Crude dropped $1.15, Gold slid $10, and the USD was higher. Medium term support rises back to the 2270 and 2212 pivots, with resistance at the 2286 and 2231 pivots. Tomorrow: weekly jobless claims, housing starts, building permits, and the Philly FED all at 8:30. Then a speech from FED chair Yellen at 8pm.
The market opened flat today, dropped to yesterday’s SPX 2263 low, then closed at yesterday’s 2272 high. Same range, 2263-2272, two days in a row. During today’s decline, however, the DOW, which was the leader during the entire uptrend, made a lower low than yesterday, a lower low than last week, and came within 20 points of reaching the end of December low (SPX 2234 equivalent). Tech which was the laggard during the uptrend is again close to making new highs. The tug of war continues in the choppy environment. Short term support rises to the 2270 pivot and SPX 2254, with resistance at the 2286 and 2321 pivots. Short term momentum reached overbought at today’s close. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: uptrend