SHORT TERM: lower open then choppy action, DOW -65
Overnight the Asian markets lost 0.5%. Europe opened lower but gained 0.2%. US index futures were lower overnight, and at 8:30 personal income (0.4% v 0.4%)/spending (0.1% v 0.2%) were reported higher, as was the PCE: 0.1% v 0.4%. The market opened 5 points below yesterday’s SPX 2368 close and began to move higher. At 9:45 the Chicago PMI was reported higher: 57.7 v 57.4. At 10am consumer sentiment was reported lower: 96.9 v 97.8. By 1:30 the SPX had worked its way up to 2370, and then began to pullback. Just past 2pm the SPX hit 2364, rallied back to 2370 by 3:30, then closed at 2363.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.05%. Bonds gained 7 ticks, Crude added 35 cents, Gold rose $3, and the USD was higher. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Today the WLEI was reported lower: 57.9% v 58.8%, and the Q1 GDP estimate was lower to 0.9% v 1.0%.
Thee market opened lower today, which it has done nearly the entire week. Made a low in the first half hour of trading, and then worked its way higher for the rest of the day. Exactly as it has done the entire week. Overnight futures selling and during the day cash buying. We are still counting three waves up from Monday’s SPX 2322 low: 2364-2353-2370. Over the past two days the SPX has hit 2370 four times and stalled. Clearly a favored short term resistance area. Some interesting observations in the weekend update, in regard to the short term count and the medium term trend. Worth the read. Will be posting on Sunday a long-term fundamental perspective on the purchasing power of the USD, and potentially how to fix it. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: uptrend