SHORT TERM: lower open pullback, DOW -31
Overnight the Asian markets gained 0.2%. Europe opened higher but lost 0.1%. US index futures were higher then lower overnight, and the market opened 2 points below yesterday’s SPX 2356 close. After ticking up to unchanged in the opening minutes the market headed lower. At 10am existing home sales were reported higher: 5.71m v 5.48m. Just past 1pm the SPX hit 2345, then rallied to 2353 by 2:30. After that it pulled back to end the week at SPX 2349.
For the day the SPX/DOW lost 0.20%, and the NDX/NAZ lost 0.05%. Bonds gained 5 ticks, Crude dropped $1.15, Gold added $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: 56.5% v 57.0%, and the Q1 GDP estimate was reported unchanged for the week at 0.5%.
The string of 4 straight gap openings was broken today, even though it was option expiration Friday. The market opened slightly lower and pulled back for most of the day. It is possible yesterday’s SPX 2361 high is one of significance. More on this in the weekend update. In the meantime, the NDX/NAZ continue to trade near all time highs, nothing significant on the downside yet. Still awaiting this sector to roll over before anticipating a downtrend low. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: uptrend