SHORT TERM: all-time new high then pullback, DOW +63
Overnight the Asian markets gained 0.8%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and the market opened at a new high: SPX 2504. In the opening minutes the SPX hit 2508, and then started to drift lower. At 10am the NAHB was reported lower: 64 v 67. The market continued lower until it hit Friday’s SPX 2500 close around 2:30. Then it bounced into a SPX 2504 close.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ ended mixed. Bonds lost 7 ticks, Crude slipped 10 cents, Gold dropped $12, and the USD was higher. Medium term support remains at the 2479 and 2456 pivots, with resistance at the 2525 pivot. Tomorrow: housing starts, building permits and export/import prices all at 8:30.
The market opened at an all-time high today, rallied to SPX 2508, then drifted lower into the afternoon. At the high the hourly RSI set up a negative divergence. Let’s see if this pullback gathers some momentum overnight/tomorrow. The short-term count from SPX 2417 remains unchanged: (1) 2455, (2) 2428, (3) 2480-2447-2508. Plenty of room for a decent pullback here without overlapping any waves. Short term support is at the 2479 and 2456 pivots, with resistance at the 2525 pivot. Short term momentum displays a negative divergence. Best to your Tuesday trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend