SHORT TERM: gap up opening sold, DOW -119
Overnight the Asian markets lost 0.1%. Europe opened higher but ended mixed. US index futures were higher overnight, and the market gapped up to SPX 2352 at the open. The SPX had closed at 2342 yesterday. In the opening minutes the SPX pulled back to 2347, then made a slightly higher high at 2353 by 10am. After that it started to pullback. At 2pm the FED: https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm. Around 3:30 the SPX hit 2335, then bounced to close at 2338.
For the day the SPX/DOW lost 0.40%, and the NDX/NAZ gained 0.20%. Bonds lost 10 ticks, Crude dropped $1.90, Gold slid $11, and the USD was higher. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Tomorrow: weekly jobless claims and the Philly FED at 8:30, then leading indicators at 10am.
The market had another gap opening today, for the third day in a row. Monday’s gap up was bought, Tuesday gap down was bought, but today’s gap up was sold. Rebound from SPX 2329 over? While three of the four major indices have enjoyed a rebound this week, the DOW has already dropped below last week’s low and its March low (SPX 2322 equivalent). Earnings disappointments in GS and IBM have contributed to the decline. The choppy activity, which has been with us since early March continues, as Minute wave C unfolds. Short term support is at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Short term momentum hit overbought early then declined throughout the day and ended oversold. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend