SHORT TERM: lower open then rebound, DOW -42
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 0.4%. US index futures were lower overnight, and the market opened 5 points below yesterday’s SPX 2359 close. In the opening minutes the market ticked down to SPX 2353, then rallied to 2362 by 11am. At 10am pending home sales were reported higher: 5.5% v -2.8%. Then after a pullback to SPX 2356 by 11:30 the market started to work its way higher. Around 3pm the SPX hit its high for the day at 2363, then ticked down to close at 2361.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.40%. Bonds gained 8 ticks, Crude rallied $1.05, Gold added $3, and the USD was higher too. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Tomorrow: Q4 GDP final (est. 2.0%) and weekly jobless claims at 8:30.
The market opened lower today, then rebounded for the rest of the day. After nearly two days of rally, from SPX 2322-2264, today looks like a consolidation day. The next market objective, to keep this rally going, would be to challenge the 2385 pivot. So far this rally looks like two waves : 2364-2353, with possibly the third wave underway. Short term support is in the mid-2350’s and the 2336 pivot, with resistance at the 2385 pivot and SPX 2401. Short term momentum remained around overbought for most of the day. Best to your trading!
MEDIUM TERM: uptrend rebounding
LONG TERM: uptrend