SHORT TERM: gap down opening, DOW -158
Overnight the Asian markets lost 0.3%. Europe opened higher but lost 0.5%. US index futures were lower overnight. At 8:15 the ADP was reported lower. Then at 8:30 jobless claims were reported higher, and the trade deficit narrowed. The market gapped down to SPX 2424 at the open, and continued to decline. The market had closed at SPX 2433 yesterday. At 10am ISM services was reported higher. Just past 10am the SPX hit 2413 and started to rally. The rally lasted until 1:30 when the SPX hit 2423. Then market declined again. Heading into the close the SPX hit 2408, then closed at 2410.
For the day the SPX/DOW lost 0.85%, and the NDX/NAZ lost 0.95%. Bonds dropped 7 ticks, Crude rose 20 cents, Gold was flat, and the USD was lower. Medium term support drops to the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: monthly Payrolls (est. 180K) at 8:30.
The market gapped down at the open today, breaking the streak of only gap up openings for the past three weeks. After hitting SPX 2413 the market bounced, and then headed even lower in the last hour of trading. A SPX downtrend was confirmed today by OEW. With three of the four major indices now in confirmed downtrends we only await a downtrend confirmation by the DOW. The March, 2014 scenario appears to be playing out. Still expecting this correction to find support between the 2321/2286/2270 pivots. Short term support is at the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Short term momentum ended the day quite oversold. Best to your trading!
MEDIUM TERM: SPX/NDX/NAZ downtrend
LONG TERM: uptrend