SHORT TERM: higher open minor gains, DOW +38
Overnight the Asian markets lost 0.3%. Europe opened higher but finished mixed. US index futures were higher overnight, and at 8:30 the trade deficit was reported lower: -$44.3B v -$45.2B. The market opened 4 points above yesterday’s SPX 2293 close, ticked up to 2299, and then started to pullback. By 1pm the SPX had hit 2290. At 3pm consumer credit was reported lower: $14.2B v 24.5B. Just after 3pm the market hit SPX 2295. Then a pullback ended the day at SPX 2293.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.25%. Bonds rose 4 ticks, Crude dropped 80 cents, Gold slipped $2, and the USD was higher. Medium term support remains at the 2286 and 2270 pivots, with resistance at the 2321 and 2336 pivots.
The market opened higher today. The DOW/NDX/NAZ made all-time new highs, but the SPX did not. Then the market started to pullback. There remains some stiff resistance around the SPX 2300 level. Look at the daily highs over the past two weeks: 01/25 2300, 01/26 2301, 02/03 2298 and 02/07 2299. The market may need to gap over this level if this uptrend is going to extend any time soon. SPX 2267 and 2305 remain the key levels to watch. Short term support is at the 2286 and 2270 pivots, with resistance at SPX 2301 and the 2321 pivot. Short term momentum set up another negative divergence at today’s high then dropped to neutral. Best to your trading!
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MEDIUM TERM: uptrend
LONG TERM: uptrend