SHORT TERM: lower open then choppy day, DOW -76
Overnight the Asian markets lost 1.0%. Europe opened lower and lost 0.6%. US index futures were relatively flat overnight, and the market opened 3-points lower than yesterday’s SPX 2430 close. At 10am consumer sentiment was reported higher, the SPX hit 2421, and the market started to rally. The rally topped out at SPX 2440 by 12:30. Then the market drifted down for the rest of the day to close at SPX 2426.
For the day the SPX/DOW lost 0.25%, and the NDX/NAZ lost 0.10%. Bonds gained 1 tick, Crude rallied $1.55, Gold slipped $2, and the USD was lower. Medium term support drops to the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots. This week the Q3 GDP estimate was reported at 3.8%.
The market opened slightly lower today, hit SPX 2421, then rallied to SPX 2440. After that the market eased back to end the day about where it opened. While the market does look like it is in a profit taking correction mode, the decline thus far has been quite orderly and symmetrical. Plus, several of the majors are displaying positive daily RSI divergences. Interesting market. More on this in the weekend update. Best to your weekend!
MEDIUM TERM: downtrend probably underway
LONG TERM: uptrend