SHORT TERM: overnight selling then rebound, DOW +39
Overnight the Asian markets lost 0.1%. Europe opened lower but gained 0.3%. US index futures were lower overnight, and at 8:30 the trade deficit reported improvement: -$43.6B v -$48.2B. The market opened 4 points below yesterday’s SPX 2359 close, then hit 2351 just past 10am. At 10am factory orders were reported higher: 1.0% v 1.5%. The market then rallied to SPX 2360 by noon, pulled back to 2354 by 1pm, and ended the day at 2360.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.10%. Bonds lost 3 ticks, Crude rallied 80 cents, Gold gained $3, 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 ADP at 8:15, then ISM services at 10am.
SPX futures sold off heading into the open, but rebounded enough for only a 4 point lower open. Then after a drop to SPX 2351 the market rallied to 2360. After that it remained in a 6 point trading range and ended the day at the high. Today’s range SPX 2351-2360 remained inside yesterday’s important range: 2345-2366. Yesterday’s comments regarding that range are still applicable. Short term support is at SPX 2345 and the 2336 pivot, with resistance at SPX 2365, 2370 and the 2385 pivot. Short term momentum ended the day rising above neutral. Trade what’s in front of you!
MEDIUM TERM: uptrend under pressure
LONG TERM: uptrend