SHORT TERM: gap down opening on NK fears, DOW -37
Overnight the Asian markets lost 0.8%. Europe opened lower and lost 1.0%. US index futures were lower overnight, and the market gapped down to SPX 2464 at the open. The SPX had closed at 2475 yesterday. In the opening minutes the SPX ticked down to 2462, and then began to rebound. The market continued higher until hitting SPX 2473 at 12:30. Then it started to pullback again. Around 2:30 the SPX hit 2465, then rallied to close at 2474.
For the day the SPX/DOW lost 0.10%, and the NDX/NAZ lost 0.20%. Bonds gained 8 ticks, Crude rose 40 cents, Gold rallied $14, and the USD was lower. Medium term support remains at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: jobless claims and the PPI at 8:30, then the budget deficit at 2pm.
The market gapped down at the open today, following yesterday’s big “new all-time high 1% reversal” day. What the market couldn’t do in the previous 14 sessions, it managed to get done in just three hours yesterday afternoon. These quick steep declines appear to occur about every month. Look at the NDX/NAZ daily charts. Within minutes after the open the market hit the low for the day at SPX 2462. Then closed at the high for the day at SPX 2474. Was that 29-point decline, 2491-2462, all of Micro 2? Short term support is at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum ended at neutral after being oversold. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend