SHORT TERM: gap down opening, DOW -51
Overnight the Asian markets gained 0.1%. Europe opened lower and lost 0.5%. US index futures were lower overnight and the market opened at SPX 2373. The SPX had closed at 2383 on Friday. At 10am, as the market drifted lower, factory orders were reported higher: 1.2% v 1.3%. At 11am the SPX hit 2368 and then started to rally. The rally continued until 3:30 when the SPX hit 2379. Then a pullback into the close ended the day at SPX 2375.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.30%. Bonds slipped 2 ticks, Crude dipped 15 cents, Gold lost $8, and the USD was higher. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Tomorrow: the trade deficit at 8:30, then consumer credit at 3pm.
The market opened below Friday’s SPX 2375 low, and continued down to 2368 before rallying for the rest of the day. The market had spent six consecutive trading days vacillating above and below the SPX 2360’s, before gapping up last Wednesday and hitting SPX 2401. Now three days after that gap up the market went back into the SPX 2360’s. Also at today’s low the market had pulled back 33 points from the SPX 2401 high. The largest pullback since late-January’s 34 point pullback for Nano wave ii. This pullback certainly has the appearances of a Nano wave iv. Ideally the market should retest today’s low Tuesday or Wednesday, or slightly lower, set up a short term positive divergence, then start to rise in Nano wave v. Short term support remains at SPX 2353 and the 2336 pivot, with resistance at the 2385 pivot and SPX 2401. Short term momentum rose from oversold to neutral during this afternoon’s rally. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend