SHORT TERM: flat open – then pullback, DOW +8
Overnight the Asian markets gained 0.2%. Europe opened higher but lost 0.4%. US index futures were relatively flat overnight. At 8:30 housing starts were reported higher: 1246K v 1226K, building permits were reported higher: 1285K v 1210K, weekly jobless claims were reported higher: 239K v 234K, and the Philly FED was reported at a 30-year high: 43.3 v 23.6. The market opened unchanged at SPX 2349, bounced up to the 2351 high, and then started to pullback. Just before 11am the SPX hit 2339, then bounced to 2347 by 1pm. A pullback to SPX 2341 followed by 2:30, then a bounce ended the day at 2347.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.05%. Bonds rallied 15 ticks, Crude added 30 cents, Gold rallied $6, and the USD was lower. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 pivot. Tomorrow: leading indicators at 10am and it’s options expiration friday.
The market opened flat today, bounced, and then pulled back 12 points. The pullback was enough to reset the short term RSI, but the daily/weekly remain quite elevated. From the late-January SPX 2267 low the market has rallied in 9 small waves to the SPX 2351 high. During the rally the pullbacks have ranged between 10 and 17 points. The current pullback is well within that range. If it extends lower, and drops below SPX 2332, then a retest of the OEW 2321 pivot range is possible. Short term support remains at the 2336 and 2321 pivots, with resistance at SPX 2351 and the 2385 pivot. Short term momentum dropped to neutral during today’s pullback, and was rising at the close. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend