SHORT TERM: lower open then narrow range, DOW +10
Overnight the Asian markets lost 0.4%. Europe opened lower but gained 0.3%. US index futures were lower overnight, and at 8:30 jobless claims were reported lower. The market opened three points below yesterday’s SPX 2478 close, then pulled back to 2471 by 10am. At 10am ISM services were reported lower, but factory orders were reported higher. The market then worked its way back to the SPX 2475 opening level by 11am. In the last hour of trading the SPX hit 2469, then bounded to close at 2472.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.35%. Bonds gained 11 ticks, Crude lost 65 cents, Gold added $2, and the USD was lower. Medium term support remains at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: monthly payrolls (est. +180k) at 8:30, then the trade deficit at 3pm.
The market opened at SPX 2475, dropped to 2469 in the last hour, spending the entire day within a 6-point range. Today was the 12th consecutive trading day the SPX traded within the OEW 2479 pivot range. What is resistance now, will eventually become support. During this period the overbought condition has now dropped to neutral, or below, except for the DOW. Short-term, and very short-term counts, remain mixed. Anyone’s guess which way the market will head from here short term. A case can be made for either direction. Short term support is at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum ended the day near neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend