SHORT TERM: Tech continues to lead market, DOW -27
Overnight the Asian markets gained 0.2%. European markets were closed. US index futures were higher overnight. At 8:30 personal income (0.2% v 0.3%)/spending (0.0% v 0.0%) was reported mixed, and the PCE was reported lower: -0.1% v 0.2%. The market opened 5 points above Friday’s SPX 2384 close, then drifted down to 2385 by 10:30. At 10am construction spending was reported lower: -0.2% v 1.8%, and ISM was reported lower: 54.8 v 57.2. The market then rose to SPX 2391 by 12:30, only to drop back to 2385 just before 1pm. After that the market rallied. Around 2pm the SPX hit 2394, then pulled back to close at 2388.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.80%. Bonds lost 7 ticks, Crude slipped 55 cents, Gold dropped $11, and the USD was higher. Medium term support rises back to the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: monthly auto sales.
The market opened higher today with very few foreign markets open. After two pullbacks to SPX 2385 the market managed to reach 2394 in the afternoon, then pulled back. Tech was strong but the DOW was negative. Quite a one-sided market of late. Investors buying growth and selling cyclicals. As a result the market remains bifurcated. Techs making new highs and cyclicals going sideways. Short term count remains unchanged with three waves up from SPX 2329: 2361-2345-2398. Short term support is at the 2385 pivot and SPX 2369, with resistance at SPX 2401 and the 2411 pivot. Short term momentum ended the day just below neutral. Best to your trading!
MEDIUM TERM: close to confirming an uptrend
LONG TERM: uptrend