SHORT TERM: gap up opening then pullback, DOW +141
Overnight the Asian markets lost 0.7%. Europe opened lower and lost 0.5%. US index futures were higher overnight, and at 8:30 weekly jobless claims rose. The market gapped up at the open to SPX 2849, and immediately started to pullback. At 10am the SPX had reached 2834 when new home sales were reported lower, and leading indicators higher. After that the market rallied back to SPX 2847 by 12:30, before reversing to 2831 just past 3pm. A rally into the close ended the day at SPX 2839.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ lost 0.05%. Bonds gained 8 ticks, Crude slipped 40 cents, Gold dropped $9, and the USD was higher. Medium term support is at the 2835 and 2798 pivots, with resistance at the 2858 and 2884 pivots. Tomorrow: Q4 GDP (est. 3.0%), durable goods.
The market hit an all time new high yesterday at SPX 2853, then started to pullback. Yesterday’s pullback dropped the SPX to 2825 before an afternoon recovery. Today the market gapped up at the open (SPX 2849), but immediately reversed to 2831 late in the afternoon. Some volatile activity since yesterday’s new high. We do have a reversal of some degree after the SPX 2853 high. Where it fits in the overall Minute v structure is too early to tell. If this is Micro 4 would expect this pullback to at least retest yesterday’s lows. Friday may give us some answers. Short term support is at the 2835 and 2798 pivots, with resistance at the 2858 and 2884 pivots. Short term momentum ended the day right around neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend