SHORT TERM: selling continues, DOW -363
Overnight the Asian markets lost 1.1%. Europe opened lower and lost 1.0%. US index futures were lower overnight as well. At 9am Case-Shiller was reported higher. The market gapped down at the open for the second day in a row, after closing at an all-time high on Friday. The SPX opened at 2829, after ending Monday’s session at 2854. In the opening minutes the market rallied to 2838, then dropped to 2818, the low of the day, at 10am. At 10am consumer confidence was reported higher. The market then rallied to SPX 2835 by 11am. After that thee market traded in a wide range and ended the day at SPX 2822.
For the day the SPX/DOW lost 1.25%, and the NDX/NAZ lost 0.85%. Bonds lost 6 ticks, Crude dropped $1.20, Gold slid $6, and the USD was lower. Medium term support drops to the 2798 and 2780 pivots, with resistance at the 2935 and 2858 pivots. Tomorrow: the ADP at 8:15, Chicago PMI at 9:45, pending home sales at 10am, then the FOMC statement at 2pm.
The market gapped down at the open today for the second day in a row, continuing this week’s pullback from the Friday closing high of SPX 2873. During Monday’s decline the SPX overlapped the previous rally high (2853), when reaching 2851 late in the day, for the first time since mid-December. After yesterday’s close, noting the overlap and nine waves up from the SPX 2652 low, I posted Nano (gray) waves 1-2-3 on the hourly chart: 2672-2652-2873-2818 so far. Nano 4 underway now, with new highs for Nano 5/Micro 3 next. It has been a very long uptrend with lots and lots of waves. And, the short term count is just one of many that could be presented. Trade what you see!
MEDIUM TERM: uptrend
LONG TERM: uptrend