SHORT TERM: cyclical/tech sectors reverse roles, DOW -57
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.3%. US index futures were lower, then higher overnight, and the market opened at SPX 2441. The SPX had closed at 2437 yesterday. At 10am existing home sales were reported higher. By 10:30 the SPX had ticked up to 2442 and then started to pullback. By 11am the SPX hit 2433, bounced to 2438 by noon, then hit 2431 by 2pm. Another bounce into the close ended the day at SPX 2436.
For the day the SPX/DOW lost 0.15%, and the NDX/NAZ gained 0.85%. Bonds lost 4 ticks, Crude dropped $1.10, Gold rose $4, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: jobless claims at 8:30, then leading indicators at 10am.
The market opened higher today, ticked up, and then pulled back for the rest of the day. While the pullback was not surprising, the reversal of sector performance was. The Techs have been leading the market lower for nearly two weeks, while Cyclicals have made new highs. Today that role reversed, as the Techs rallied while the Cyclicals were moving lower. A 3% surge in Biotech may have helped. No change on the short term count, four overlapping waves from Minute iv at SPX 2416: 2444-2419-2456-2431. Subdividing Minute v or ending diagonal underway? Short term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum bounced slightly off today’s oversold condition. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend