SHORT TERM: lower open mixed market, DOW -33
Overnight the Asian markets gained 0.6%. Europe opened lower but gained 0.3%. Overnight SPX futures were lower, and at 8:30 import prices were reported higher: 0.5% v -0.2%. The market opened 2 points below yesterday’s SPX 2397 close, then dipped down to 2393 by 10:30. After that the market started to drift higher. At 2pm a budget surplus of $182b was reported versus a surplus of $106b. The market hit SPX 2400 in the last hour of trading and closed there.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.10%. Bonds added 1 tick, Crude rallied $1.50, Gold was flat, and the USD was lower. Medium term support remains at the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: weekly jobless claims and the PPI at 8:30.
The market opened slightly lower today, dipped to within 1 point of yesterday’s SPX 2392 low, then drifted up for the rest of the day. Not much change in the short term count. Three waves up from SPX 2329, and a more defined three waves up on a shorter timeframe. Key levels: support low-2380’s, breakout 2404+, breakdown 2361-. Market appears to be looking for a catalyst. Retail sales and the CPI on Friday. Short term support is at the 2385 pivot and SPX 2361, with resistance at the 2411 and 2428 pivots. Short term momentum did hit oversold this morning, then rebounded to almost overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend