SHORT TERM: gap down opening, DOW -114
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 1.7%. US index futures were lower overnight. Yesterday, after the close, there was a FED speech: https://www.federalreserve.gov/newsevents/speech/fischer20170417a.htm. At 8:30 this morning housing starts were reported lower: 1215k v 1288k, and building permits were reported higher: 1260k v 1213k. Then at 9:15 industrial production was reported higher: 0.5% v 0.0%, and capacity utilization was reported higher: 76.1% v 75.9%. The market gapped down at the open to SPX 2339, then reversed. The market had closed at SPX 2349 yesterday. By 10am the SPX had rallied back to 2348, but then headed even lower. Around noon the SPX hit 2335. Then after a rally to SPX 2345 by 2:30 the market closed at 2342.
For the day the SPX/DOW lost 0.40%, and the NDX/NAZ lost 0.10%. Bonds gained 21 ticks, Crude slipped 10 cents, Gold rose $6, and the USD was lower. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Tomorrow: the FED’s beige book at 2pm.
The market reversed yesterday’s gap up opening with a gap down opening today. The market is acting like a correction. The gap down opening was bought, the market nearly closed the gap, then headed even lower. Lots of volatility in just the first two days of the week. As noted over the weekend, and yesterday, we are expecting this Minute C wave to break the recent SPX 2329 low, the 2322 low, and possibly find support around SPX 2299. Also, still waiting for some downside action in the Tech sector before this correction concludes. Short term support is at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Short term momentum dropped below neutral this morning but moved just above neutral in the afternoon. Swarm at 5pm. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend