SHORT TERM: lower open consolidation day, DOW -3
Overnight the Asian markets gained 0.1%. Europe opened lower but gained 0.1% as well. US index futures were lower overnight. At 8:30 Q1 GDP was reported higher: 1.2% v 0.7%, and durable goods were reported lower: -0.7% v 2.3%. The market opened 2 points below yesterday’s SPX 2415 record close. In the opening minutes the SPX ticked down to 2412, then tried to rally. At 10am consumer sentiment was reported lower: 97.1 v 97.7. At 10:30 the SPX hit 2417, then went into 5-point trading range for the rest of the day closing at 2416.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.10%. Bonds gained 2 ticks, Crude rose 85 cents, Gold rallied $11, and the USD was higher. Medium term support remains at the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots. Today the WLEI was reported higher: 55.1% v 55.0%, and the Q2 GDP estimate was lowered: 3.7% v 4.1%.
The market opened lower today for the first time in a week. At today’s low the SPX was only 7 points from yesterday’s 2419 all-time high. Not much of a pullback after a 66-point rally, and looking more like a consolidation day. With Monday a holiday it is likely many took Friday off for a 4-day holiday. After clearing the OEW 2411 pivot yesterday the market has since used that pivot as support. Should the SPX lose pivot support (2404) then we should start seeing some subdivisions in this rally. Until then we see the OEW 2428 pivot being challenged next. Best to your extended weekend!
MEDIUM TERM: uptrend
LONG TERM: uptrend