SHORT TERM: gap up opening then decline, DOW -10
Overnight the Asian markets gained 0.8%. Europe opened higher and gained 0.2%. US index futures were higher overnight, and at 8:30 the NY FED index was reported lower. The market gapped up at the open to SPX 2802, and continued on to 2808 by 10am. After that, a pullback began. Just before 11am the SPX hit 2791, bounded to 2797 by 11:30, then headed even lower. At 2:30 the SPX hit 2769. Then after a rally to SPX 2782 by 3:30 the market closed at 2776.
For the day the SPX/DOW lost 0.20%, and the NDX/NAZ lost 0.40%. Bonds gained 1 tick, Crude added 15 cents, Gold rose $2, and the USD was lower. Medium term support drops to the 2731 and 2656 pivots, with resistance at the 2780 and 2798 pivots. Tomorrow: industrial production at 9:15, the homebuilders index at 10am, and then the Beige book at 2pm.
The market gapped up at the open today, rallied some 20+ points, and made a new high at SPX 2808. At the highs, not only did the SPX cross 2800 for the first time. The DOW crossed 26000, the NAZ crossed 7300, and the SPX was now up nearly 1000 points from the SPX 1810 bear market low in February 2016. Apparently traders were waiting for some or all of these events, as the market responded to those new highs by pulling back. The pullback gathered more sellers the lower it went. Until after declining nearly 40 points the market rebounded. No change in the counts. Short term support is at the 2731 and 2656 pivots, with resistance at the 2780 and 2798 pivots. Short term momentum ended the day oversold. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend