SHORT TERM: lower open then rally, DOW +6
Overnight the Asian markets lost 0.3%. Europe opened higher but ended mixed. US index futures were slightly lower overnight, and the market opened two points below yesterday’s SPX 2591 close. In the opening minutes the SPX dropped to 2585, and then began to rise. The rally continued into the last hour of trading when the SPX hit 2595. A dip near the close ended the day at SPX 2594.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.35%. Bonds lost 7 ticks, Crude slid 40 cents, Gold added $4, and the USD was lower. Medium term support remains at the 2575 and 2525 pivots, with resistance at the 2594 and 2632 pivots. Tomorrow: weekly jobless claims at 8:30, then wholesale inventories at 10am.
The market opened slightly lower today, hit SPX 2585, (above yesterday’s 2584 low), then rallied to 2595 in the last hour of trading. While we have witnessed a fairly wide swing in the past two days, (2597-2584-2595), none of it registered as quantified wave activity. As a result we remain with three waves up since the Micro 4 SPX 2544 low: 2588-2566-2597. Chop, chop, let’s see what’s next. Short term support is at the 2575 pivot and SPX 2566, with resistance at the 2594 and 2632 pivots. Short term momentum ended the day just below overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend