SHORT TERM: gap down opening, DOW -85
Overnight the Asian markets were mixed. Europe opened higher but ended mixed as well. US index futures were lower overnight, and at 8:30 personal income/spending were both reported higher. The market gapped down at the open to SPX 2574, held, then tried to rally. The SPX had closed at 2581 on Friday. By 10:30 the SPX had reached 2580, then headed lower. Around 12:30 the SPX hit 2568, and tried to rally again. Heading into the close the SPX reached 2575, then closed at 2573.
For the day the SPX/DOW lost 0.35%, and the NDX/NAZ were mixed. Bonds gained 13 ticks, Crude rose 20 cents, Gold added $4, and the USD was lower. Medium term support slips to the 2525 and 2497 pivots, with resistance at the 2575 and 2594 pivots. Tomorrow: Case-Shiller at 9am, the Chicago PMI at 9:45, and consumer confidence at 10am.
The market gapped down at the open for the first time since October 19th. In fact over the past 8 trading days, and 40-point SPX trading range, there have been five gap openings. Choppy activity while the SPX was making two new highs: 2575 and 2583. We’re expecting this choppiness to continue until waves Minute iii and iv complete. Then Minute v should be a fairly good rally to new highs. Currently not seeing any potential top for this Micro wave 5 rally, unless the SPX drops into the low 2560’s. Short term support is at SPX 2544 and the 2525 pivot, with resistance at the 2575 and 2594 pivots. Short term momentum neared oversold during today’s pullback, then nudged higher. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend