SHORT TERM: 4th straight gap down opening, DOW +567
Overnight the Asian markets lost 3.8%. Europe opened lower and lost 2.0%. US index futures were sharply lower overnight, in volatile trade, and the market gapped down at the open for the low of the day at SPX 2593. The SPX had closed at 2649 yesterday, after dropping 113 SPX points on Monday. The market then started to rally and hit SPX 2682 in only a 1/2 hours time. Quite a volatile market. After that it dropped to SPX 2620 by 10:30, hit 2669 by 12:30, then dropped to 2628 by 2:30. Another rally followed to SPX 2701 by 3:30. Then the market backed off to SPX 2695 at the close. This market is moving in one hour, what normally takes one week.
For the day the SPX/DOW gained 2.05% and the NDX/NAZ gained 2.65%. Bonds were flat, Crude dropped 70 cents, Gold slid $13, and the USD was higher. Medium term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Tomorrow: consumer credit at 3pm.
Yesterday market volatility went into overdrive, as the DOW traded in a 1600 point range. Today the range was a bit less than 1200 points. Both days were more than the entire range of the previous week. This market is sometimes moving about 3% in one hour. This is insane activity, especially with hardly any fundamental news to drive it. Nevertheless, it only took one day after the weekend update for the SPX/DOW to confirm an Int. iv downtrend. Normally the market is close to a bottom when that occurs. While 4th waves have been fairly mild since 2016. This one has been quite violent. This is normally sign that the next run to new highs will end the bull market. In example: 1987, 2007 and 2014. For those trading this market, you are a better trader than most. Good luck!
MEDIUM TERM: downtrend
LONG TERM: uptrend