SHORT TERM: flat opening sideways day, DOW +24
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 0.7%. US index futures were higher overnight, and at 8:30 housing starts and building permits were both reported lower. The market opened unchanged at SPX 2432 then started to pullback. At 10am consumer sentiment was reported lower. Just before 11am the SPX hit 2423 and then tried to rally. The rally continued into the close and the SPX ended the week at 2433.
For the day the SPX/DOW gained 0.05%, and the NDX/NAZ lost 0.25%. Bonds gained 4 ticks, Crude added 25 cents, Gold was flat, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Today the Q2 GDP estimate was lowered to 2.9% from 3.0%, and the WLEI was lower too.
Quiet day with mostly down to sideways activity on this options expiration Friday. It would appear most of the option related volatility occurred yesterday. These expirations, in recent times, have turned into Thursday or Friday affairs. Short term the breakout levels SPX 2444 and 2446 remain, as well as, the breakdown levels SPX 2416 and 2406. Meanwhile, despite the spike in AMZN today after the WFM announcement, the Tech sector remains weak. More on this in the weekend update. Enjoy your weekend!
MEDIUM TERM: uptrend may have topped
LONG TERM: uptrend