SHORT TERM: higher open then sideways, DOW +29
Overnight the Asian markets lost 0.2%. Europe opened higher and gained 0.2%. US index futures were higher overnight. At 9am Case-Shiller was reported higher. The market opened three points above yesterday’s SPX 2573 close, then dipped down to 2572 by 10am. At 9:45 the Chicago PMI was reported higher, then at 10am consumer confidence was reported higher too. The market then rose to 2578 by 11am and held there until 3:30. Heading into the close the market dipped to SPX 2574 and closed at 2575.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.40%. Bonds lost 4 ticks, Crude added 30 cents, Gold slid $4, and the USD was lower. Medium term support remains at the 2575 and 2525 pivots, with resistance at the 2594 pivot. Tomorrow: ADP at 8:15; ISM, auto sales, and construction spending at 10am; the FOMC statement at 2pm.
The market opened higher today, dipped, and then tried to rally. In the end it remained within yesterday’s range. There is now a technical setup we were not expecting. It is possible Micro 5 ended on Friday at SPX 2583. During Minute i: After a one month Micro 1 and Micro 3, Micro 5 was only two days and ended with a gap up. During Minute iii: Micro 1 was one month plus Micro 3 was two months, and thus far Micro 5 is only two days (Friday 2583) with the last day a gap up. The key it appears is Monday’s range: 2568-2580. A break of 2568 could lead to further downside and a Minute iv pullback. We just posted a green Minute iii at SPX 2583. Short term support is at the 2575 pivot and SPX 2544, with resistance at SPX 2583 and the 2594 pivot. Short term momentum barely reached overbought during today’s rise. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend