SHORT TERM: lower open then substantial pullback, DOW -54
Overnight the Asian markets lost 0.6%. Europe opened lower and lost 0.1%. US index futures were lower overnight, and the market opened three points below Friday’s SPX 2502 close. In the opening moments the SPX dipped to 2498, then bounced to 2503 by 10:30. By 11am the SPX had dropped to 2488, its lowest level in two weeks. The market then started bouncing around: 2495 by 11:30, 2489 just past noon, 2496 by 1:30, 2491 by 2:30. Then the market bounced to close at SPX 2497.
For the day the SPX/DOW lost 0.20%, and the NDX/NAZ lost 1.00%. Bonds gained 10 ticks, Crude rose $1.55, Gold rallied $13, and the USD was higher. Medium term support remains at the 2479 and 2456 pivots, with resistance at the 2525 pivot. Tomorrow: Case-Shiller at 9am, consumer confidence and new home sales at 10am. At 12:45 a speech from FED chair Yellen in Cleveland.
The market opened slightly lower today, bounced around a bit, then had its first decent correction in three weeks. Thanks to more rhetoric from rocket man Kim. At the low the market had pulled back 21 points from last week’s SPX 2509 ATH. This was sufficient to trigger a short term reversal and we now have an updated short term count. From SPX 2417: (1) 2455, (2) 2429, (3) 2480-2447-2509-2488(?). The next rally to new highs should complete wave (3). After that a wave (4) pullback, and then new highs again for wave (5). Still expecting the market to hit the 2525 pivot during this Minute wave iii rally. Short term support is at the 2479 and 2456 pivots, with resistance at the 2525 pivot. Short term momentum hit quite oversold this morning, then bounced a bit. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend