SHORT TERM: higher open then pullback, DOW -5
Overnight the Asian markets gained 0.2%. Europe opened lower and lost 0.3%. US index futures were lower, then higher, overnight. The market opened at SPX 2449, 6-points above Friday’s close, then immediately began to pullback. By 10:30 the SPX had dropped to 2441. After a bounce to SPX 2446 by 11am, the market dropped to 2439 by 12:30. Then the market drifted higher in the afternoon to close at 2444.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 0.25%. Bonds rose 4 ticks, Crude dropped $1.15, Gold rallied $19, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: Case-Shiller at 9am and consumer confidence at 10am.
The market opened higher today, but then immediately gave back the gain and dropped below Friday’s SPX 2442 low. At current levels this triggered another very short-term reversal. From the SPX 2491 ATH, we continue to see three waves down to 2417 for wave A. Then three waves up to Friday’s SPX 2454, or, a potential incomplete triangle for wave B: 2455-2436-2454-2439?-xxxx. A break below SPX 2436 will probably get things going to the downside again. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum ended the day below neutral. Best to your trading!
MEDIUM TERM: downtrend probably underway
LONG TERM: uptrend