SHORT TERM: flat open choppy day, DOW +29
Overnight the Asian markets lost 0.3%. Europe opened lower and lost 0.5%. US index futures were relatively unchanged, and the market opened unchanged at SPX 2426. Shortly after the open the market started to pullback. By 10:30 it had dropped below’s Friday’s low and hit SPX 2417. After that, with a positive divergence in tow, the market rallied to SPX 2431 by 12:30. A dip to SPX 2423 followed by 3pm. Then the market bounced to close at SPX 2428
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ lost 0.05%. Bonds gained 3 ticks, Crude dropped $1.05, Gold rose $4, and the USD was lower. Medium term support remains at the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots.
The market opened flat today, dropped to SPX 2417, rallied to 2431, then pulled back into the close. Not much of a rally, but not a whole lot of selling either. We fined tuned the waves during the Minor A decline (2454-2408) and found a corrective seven. Thus far, we are counting just three waves from the Minor B high at SPX 2491: 2438-2475-2417. Usually the C wave has the same number of waves in the A wave during these types of irregular complex corrections. Let’s see how this one unfolds. Short term support is at the 2411 and 2385 pivots, with resistance at the 2428 and 2444 pivots. Short term momentum rose to neutral after this morning’s positive divergence. Best to your trading!
MEDIUM TERM: downtrend probably underway
LONG TERM: uptrend