SHORT TERM: quiet open quiet day, DOW -23
Overnight the Asian markets were mixed. Europe opened higher and gained 0.5%. US index futures were lower overnight, then crept higher heading into the open. At 8:30 weekly jobless clams were reported substantially higher (hurricane related?). The market opened three-points above yesterday’s SPX 2466 close, then immediately began to pullback. By 10:30 the SPX had reached 2461 and began to rebound. At 11am the SPX was at 2468, then declined to 2460 by 12:30. After that the market worked its way higher into a SPX 2465 close.
For the day the SPX/DOW lost 0.05%, and the NDX/NAZ gained 0.15%. Bonds gained 17 ticks, Crude slipped 5 cents, Gold rallied $13, and the USD was lower. Medium term support remains at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: wholesale inventories at 10am, then consumer credit at 3pm.
The market opened higher today at SPX 2469, dropped down to 2460, then stayed in that range for the rest of the day. Since today was an inside day of yesterday’s range, (2459-2470), the short-term count noted yesterday is unchanged. However, a potential repetitive pattern has emerged. If you look at the hourly chart of the March-April correction and compare it to the price action since the August 2491 high, it’s beginning to look quite similar. After the March high there was a big a-b-c down, a smaller a-b-c up, then a gradual choppy decline until the low was hit in April. From the recent August high there has been a big a-b-c down, a smaller a-b-c up, and now a potential choppy move lower yet again. Short term support is at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum remained at/below neutral all day. Best to your Friday trading!
MEDIUM TERM: inflection point continues
LONG TERM: uptrend