SHORT TERM: quiet open- quiet day, DOW -8
Overnight the Asian markets gained 0.2%. Europe opened higher but ended mixed. US index futures were higher overnight, and at 8:30 the NY FED was reported lower. The market opened 1 point below Friday’s SPX 2459 close, dipped to 2457, then drifted up to 2463 just past 1pm. A pullback to SPX 2458 followed by 3:30, then the market bounced to close about unchanged at 2459.
For the day the SPX/DOW lost 0.05%, and the NDX/NAZ gained 0.05%. Bonds gained 2 ticks, Crude dropped 55 cents, Gold rose $6, and the USD was lower. Medium term support remains at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: import prices at 8:30, then the NAHB at 10am.
No change in the short-term count after today’s 6-point trading range. We continue to observe three waves up from the SPX 2408 downtrend low: 2432-2413-2464. We had noted last week, we had checked back to 1982 and could not find one correction as small as 2% at anytime. Over the weekend we found two: the spring of 1927 and the fall of 1944. In both historical cases they were 2% corrections during a subdivision of a larger wave. These historical events would appear to support the Minute i (2456), Minute ii (2408), Minute iii underway scenario. Will see how it works out this time as it is a small sample size. Short term support remains at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum dropped down to neutral after being extremely overbought on Friday. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend