SHORT TERM: gap down opening then rally, DOW +17
Overnight the Asian markets lost 0.7%. Europe opened higher but lost 0.4%. US index futures were lower overnight and the market gapped down to SPX 2574 at the open. The market had closed at SPX 2582 on Friday. Right after the open the market started to rally. At 2pm the federal budget deficit was reported higher. Around 3:30 the SPX hit 2588, pulled back to 2583, then closed at 2585.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.10%. Bonds lost 3 ticks, Crude was flat, Gold added $2, and the USD was lower. Medium term support remains at the 2575 and 2525 pivots, with resistance at the 2594 and 2632 pivots. Tomorrow: the PPI at 8:30.
The market gapped down for the second time in the past three trading days. This time the opening marked the low of the day at SPX 2574. After that the market rallied all the way back to close the gap and to SPX 2588. Thus far from SPX 2588 we have a choppy pattern: 2566-2597-2566-2586-2574-2588. This market is reluctant to move lower, but options expiration looms at the end of the week. Short term support is at the 2575 pivot and SPX 2566, with resistance at the 2594 and 2632 pivots. Short term momentum nearly hit overbought during to day’s rally. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend