SHORT TERM: new highs then pullback, DOW +9
Overnight the Asian markets gained 0.7%. Europe opened higher but lost 0.6%. US index futures were higher overnight, and the market opened one point above yesterday’s SPX 2591 close. In the opening minutes the market rallied to SPX 2597, and then began to pullback. The market declined to SPX 2584 just past noon, and then tried to rally. At 3pm consumer credit was reported higher. In the final hour the SPX ended the day at 2591.
For the day the SPX/DOW were mixed, and the NDX/NAZ were mixed. Bonds gained 1 tick, Crude slipped 10 cents, Gold slid $4, and the USD was higher. Medium term support remains at the 2575 and 2525 pivots, with resistance at the 2594 and 2632 pivots.
The market opened slightly higher today, rallied to a new high at SPX 2597, then pulled back 13 points. While the decline was sufficient for a pullback, it did not quantify as a wave. Could be just noise like October 30th, or there is more to go on the downside. A drop into the mid-2570’s would do the trick. Will wait to see what unfolds before speculating on a potential short term outcome. Still looking higher even if a further drop occurs. Short term support is at the 2575 pivot and SPX 2566, with resistance at the 2594 and 2632 pivots. Short term momentum nearly hit oversold today, then bounced. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend