SHORT TERM: lower open then choppy day, DOW -36
Overnight the Asian markets lost 0.7%. Europe opened lower and lost 0.7% as well. US index futures were lower overnight, and the market opened 6-points below Friday’s SPX 2432 close. In the opening minutes the SPX hit 2430, then dropped to 2420 by 10am. Then after a rally to SPX 2428 by 11:30, the market hit 2420 again at 1pm. At 2pm the budget deficit was reported larger: -$88b v -$53b. Heading into the close the SPX hit 2429 and closed there.
For the day the SPX/DOW lost 0.15%, and the NDX/NAZ lost 0.55%. Bonds lost 3 ticks, Crude rose 25 cents, Gold slipped $1, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: the PPI at 8:30.
The market opened lower today, bounced, hit SPX 2420, bounced, hit 2420, and bounced again. With the market opening lower, and the NDX/NAZ making lower lows today, the SPX/DOW remained lower all day and within the first hour’s trading range. If the NDX/NAZ can get some sort of rebound off today’s low, then the SPX/DOW should start to make some upside progress. Getting above SPX 2432 might also help. Short term count remains unchanged with Minute iv underway, or bottoming at SPX 2416. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum rose above neutral at the close. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: uptrend