SHORT TERM: quiet open, pullback, rebound, DOW +1
Overnight the Asian markets gained 0.7%. Europe opened higher but lost 0.4%. US index futures were relatively flat overnight, and the market opened one point below yesterday’s SPX 2427 close. In the opening minutes the market dipped to SPX 2423 then tried to rally. At 10am wholesale inventories were reported higher. At 10:30 the SPX hit 2428, then dropped to 2413 by 11:30. Then it rallied. Around 3:30 the SPX hit 2429, then dipped to close at 2426.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.25%. Bonds added 5 ticks, Crude rose 65 cents, Gold added $2, and the USD was lower. Medium term support remains at the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots. Tomorrow: FED chair Yellen testifies before Congress on the economy, and the FED’s beige book at 2pm.
The market opened relatively unchanged today, bounced around neutral for an hour, dropped to SPX 2413, then rallied right back to the high (2429) of the day. While this downtrend still has declining highs: 2450-2443-2439-2432, it also has a couple of rising lows: 2406-2408-2413. It seems a bit odd, for a downtrend, that the two recent declines over the past 1 1/2 weeks have not broken the SPX 2406 low. Resilient market. And the DOW still has not confirmed a downtrend. As noted yesterday, if the recent high at SPX 2432 is broken then it possible the market is trying to gather momentum to the upside. Until that occurs we are still looking for lower lows. Short term support remains at the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots. Short term momentum ended the day around neutral. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend