SHORT TERM: higher open then pullback, DOW -55
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 0.1%.
US index futures were higher overnight, and the market opened three points above Friday’s SPX 2575 close. Then it began to pullback. The pullback continued throughout the day until the SPX hit 2564 around 3:30. Then a tick up ended the day at SPX 2565.
For the day the SPX/DOW lost 0.30%, and the NDX/NAZ lost 0.65%. Bonds gained 2 ticks, Crude slipped 5 cents, Gold added $2, and the USD was higher. Medium term support remains at the 2525 and 2479 pivots, with resistance at the 2575 and 2594 pivots.
The market opened at an all-time high today, and then started to pullback. What was new with today’s trading pattern, was that the market opened at the high and then pulled back for the whole day. This is definitely something new, compared to the last few weeks. It may suggest Micro 3 topped this morning at SPX 2578, and a 30 +/- pullback for Micro 4 is currently underway. Next FED chair uncertainty, buy the rumor sell the news earnings, or simply profit taking. The media will come up with something. Short term support is at SPX 2548 and the 2525 pivot, with resistance at the 2575 and 2594 pivots. Short term momentum was only oversold during today’s pullback. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend