SHORT TERM: lower open then rebound, DOW -6
Overnight the Asian markets gained 0.8%. Europe opened higher and gained 0.4%. US index futures were higher, then lower, overnight. The market opened 3 points below Friday’s SPX 2425 close, bounced to 2427, then hit 2422 again at 10am. After that the market started to drift higher. At 3pm consumer credit was reported higher. In the last hour of trading the SPX hit 2432, then pulled back to 2427 at the close.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.50%. Bonds gained 7 ticks, Crude rose 20 cents, Gold added $2, and the USD was higher. Medium term support remains at the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots. Tomorrow: wholesale inventories at 10am.
The market opened slightly lower today, put in a double bottom at SPX 2422, then rebounded for the rest of the day. From Thursday’s SPX 2408 low the market has now rallied 24 points to 2432. Rallies during this downtrend have been between 19 and 33 points. Currently all the rallies since SPX 2454 have had lower and lower highs: 2450, 2443, 2439 and currently 2432. Should this current rally reach SPX 2442, then it would have not only made a higher high but would also be the longest rally since the downtrend began. Until that occurs we still look for lower lows ahead. Short term support is at the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots. Short term momentum hit overbought during today’s advance, then dropped to neutral. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend