SHORT TERM: pullback resumes, DOW -27
Overnight the Asian markets lost 0.2%. Europe opened lower and lost 0.7%. US index futures were lower overnight, and the market opened 4 points below Friday’s SPX 2271 close. In the opening minutes the market popped to SPX 2272, then resumed its decline. At 11:30 the SPX hit 2257, and then did a zigzag up to 2267, before closing at 2265.
For the day the SPX/DOW lost 0.25%, and the NDX/NAZ were mixed. Bonds gained 19 ticks, Crude lost 40 cents, Gold rose $8, 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: existing home sales at 10am.
The market opened lower today, turned slightly positive at SPX 2272, then dropped to SPX 2257. The rest of the day it just drifted higher. The recent decline from SPX 2279, a week ago Friday, looks fairly symmetrical: 2258-2277-2257. Overall, however, the market activity remains choppy and looks corrective. The DOW has been weak, the NDX/NAZ stable, and the SPX appears caught in the middle. Looks like the Techs need to lead lower if a downtrend in underway. Short term support drops to SPX 2254 and SPX 2245, with resistance at the 2270 and 2286 pivots. Short term momentum dropped to oversold at today’s low, then bounced to neutral. Best to your trading!
MEDIUM TERM: downtrend underway?
LONG TERM: uptrend