SHORT TERM: pullback continues, DOW -107
Overnight the Asian markets lost 0.8%. European markets opened lower and lost 0.6%. US index futures were lower overnight, and at 9am Case-Shiller was reported higher: 5.3% v 5.1%. The market opened 7 points below yesterday’s SPX 2281 close and continued to decline. At 9:45 the Chicago PMI was reported lower: 50.3 v 54.6, then at 10am consumer confidence was reported lower: 111.8 v 113.7. The market continued lower until 11:30 when the SPX hit 2267. Then it tried to rally. The rally continued into the afternoon, and in the last hour SPX hit 2279 and closed there.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ were mixed. Bonds rose 8 ticks, Crude added 20 cents, Gold rallied $16, and the USD was lower. Medium term support remains at the 2270 and 2212 pivots, with resistance at the 2286 and 2321 pivots. Tomorrow: the ADP and auto sales at 8:15, ISM and construction spending at 10am, then the FED concludes their meeting at 2pm.
The market opened lower again today. Declined until late morning, like yesterday, then rose into the close, like yesterday. Today’s low (SPX 2267) was 1 point lower than yesterday’s low, setting up a short term positive divergence. Overall, nothing has changed as of yet. SPX 2257 remains a key level for a potential downtrend scenario. Market remains in an uptrend unless that level is broken. Short term support remains at the 2270 pivot and SPX 2257, with resistance at the 2286 pivot and SPX 2301. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend