SHORT TERM: gap up opening sold, DOW +15
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and at 8:30 durable goods were reported lower. The market gapped up to SPX 2446 at the open and rallied to 2450 by 10am. The SPX had closed at 2438 on Friday. After SCOTUS announced they were allowing some of the travel ban to go into effect the market sold off. By 11am the SPX had closed the gap and hit 2437. After that the market rallied to SPX 2444 by 1pm, then pulled back to close at 2439.
For the day the SPX/DOW gained 0.05%, and the NDX/NAZ lost 0.35%. Bonds gained 2 ticks, Crude added 45 cents, Gold dropped $11, and the USD was higher. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: Case-Shiller at 9am, then consumer confidence at 10am.
The market gapped up at the open today, just like last Monday and the Tuesday before that. While last Monday’s gap up put in the uptrend high thus far, today’s and other one were sold off. During uptrends gap up openings set the stage for higher and higher prices. Two of the last three have not. The short term wave pattern, since the SPX 2416 low on June 9th, continues to look choppy: 2444-2419-2454-2431-2450-2437 so far. The SPX 2454 level continues to look like a potential Intermediate wave iii high. The NDX/NAZ have not made new highs since their June 9th selloff. It looks like we can now tighten the breakout/breakdown range to SPX 2431 and 2454. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum ended the day below neutral after getting quite overbought. Trade what’s in front of you!
MEDIUM TERM: uptrend topped?
LONG TERM: uptrend