SHORT TERM: gap down opening decline, DOW -255
Overnight the Asian markets lost 0.7%. European markets opened higher and gained 0.5%. US index futures were lower overnight, and the market gapped down to SPX 2720 at the open. The SPX had closed at 2732 on Friday. In the opening minutes the SPX rebounded to unchanged at 2732. Then it traded to SPX 2718 by 10:30. After that a rally to a higher high at SPX 2738 by noon. Then the market headed lower for the rest of the day. Just past 3pm the SPX hit 2707, then bounced to close at 2716.
For the day the SPX/DOW lost 0.80%, and the NDX/NAZ were mixed. Bonds slipped 3 ticks, Crude added 5 cents, Gold dropped $17, and the USD was higher. Medium term support drops to the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Tomorrow: existing home sales at 10am.
The market gapped down today to start the holiday shortened week. The gap was immediately closed within the first half hour. Then after a lower low the market actually turned positive on the day. Afternoon trading, however, was all to the down side. See no problem with the pullback right here. The market had rallied 221 SPX points in one week without a quantified reversal. Now we have one: -2754-2707 so far. Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and the 2780 pivots. Short term momentum ended the day slightly oversold. Best to your trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: uptrend