SHORT TERM: flat open, new highs, then pullback, DOW +23
Overnight the Asian markets lost 0.2%. Europe opened lower and lost 0.5%. US index futures were mixed overnight, and the market opened unchanged at SPX 2602. In the opening minutes the SPX rallied to a new high at 2606, then began to pullback. At 10am new home sales were reported higher. Around 11:30 the SPX hit 2599 and then tried to rally. By 2pm the SPX hit 2603, then closed at 2601.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.10%. Bonds gained 4 ticks, Crude dropped $1.05, Gold rose $5, and the USD was higher. Medium term support remains at the 2594 and 2575 pivots, with resistance at the 2632 and 2646 pivots. Tomorrow: Case-Shiller at 9am, then consumer confidence and FED governor Powell’s confirmation hearing at 10am.
Unchanged open, marginal new high (SPX 2606), small pullback (SPX 2599), bounce, then narrow trading range. Short term count from Minute iv SPX 2557 notched higher a bit: 2590-2578-2606. Starting to see some simple downgrades in isolated Tech stocks taking about 10% out of the stock. When traders decide to take profits, after enough of these downgrades, we’ll be in a correction. Short term support remains at the 2594 and 2575 pivots, with resistance at the 2632 pivot. Short term momentum continues to display a negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend