SHORT TERM: another gap down opening, DOW -205
Overnight the Asian markets lost 0.7%. Europe opened higher but lost 1.1%. US index futures were lower overnight, and at 8:30 jobless claims were higher plus the PPI was lower. The market gapped down to yesterday’s low at SPX 2462, and continued to fall. Just past 10am the SPX hit 2451. Then after a bounce to SPX 2458 by 10:30, then market headed even lower. At 12:30 the SPX hit 2445, bounced to 2455 by 2:30, then dropped to 2438 and closed there.
For the day the SPX/DOW lost 1.20%, and the NDX/NAZ lost 2.20%. Bonds gained 9 ticks, Crude lost $1.15, Gold rose $9, and the USD was lower. Medium term support drops to the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: the CPI at 8:30.
The market gapped down at the open for the second day in a row, as the NK saber rattling continues. From Tuesday’s all-time high at SPX 2491 the market has dropped 53 points. This is a bit more than a 61.8% retracement of the entire SPX 2408-2491 rally. The last time the market ended a Micro 1 in mid-May, the market also sold off quite quickly. That event was triggered by Comey’s memo. Many EW counts floating around. It’s been that kind of market. Project, monitor and adjust. Maintaining our count until forced to change. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum ended the day extremely oversold. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend