SHORT TERM: higher open then consolidation, DOW +14
Overnight the Asian markets lost 1.1%. Europe opened lower and lost 0.7%. US index futures were lower, then higher, overnight, and at 8:30 the CPI was reported higher. The market opened at SPX 2444, 6-points above yesterday’s close, then declined to yesterday’s close in the opening minutes. The market then rallied to SPX 2448 by 10:30, dipped to 2441 by 11:30, rallied to 2447 by 2:30, then hit 2438 again at 3:30. After that a bounce into the close ended the week at SPX 2441.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.70%. Bonds rose 8 ticks, Crude added 20 cents, Gold rallied up $6, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. This week the Q3 GDP estimate was reported at 3.5% v 3.7%.
The market opened higher today, retested yesterday’s low, then went into a trading range for the rest of the day. Some consolidation after a 2% decline in two days. With the thought that the NK threats could turn into some sort of black swan event, we reviewed the seven major indices (SPX/DOW/NAZ/NDX/TRAN/SOX/R2K). Since these indices usually top/bottom around the same time in bull/bear markets, we figured each ones’ wave structure should offer some clarity. Details in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: uptrend