SHORT TERM: higher open then another pullback, DOW +116
Overnight the Asian markets were mixed. Europe opened higher and gained 0.6%. US index futures were higher overnight. At 8:30 weekly jobless claims were reported lower, along with the Philly FED. The NY FED and export/import prices were reported higher. The market opened at SPX 2756, then pulled back to 2747 in the opening minutes. At 10am the NAHB was reported lower. The market rallied to SPX 2763 by around 11:30, then headed lower again. Just past 2pm the SPX hit 2741, then rebounded to close at 2747.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.15%. Bonds lost 1 tick, Crude added 25 cents, Gold slid $8, and the USD was higher. Medium term support remains at the 2731 and 2656 pivots, with resistance at the 2780 and 2798 pivots. Tomorrow: housing starts and building permits at 8:30, industrial production at 9:15, then consumer sentiment at 10am.
For the fourth time this week the SPX rallied over 10 points early, only to get sold off for the rest of the day. After hitting a high at SPX 2802 Tuesday morning, the market has dropped 61-points to 2741 in just three days. Volatility continues. Maybe this all changes tomorrow. Option expiration usually displays a big move on either Thursday or Friday. Nothing big today, maybe tomorrow. The short term count is now under pressure. While Minor waves 1 and 2 (2754 and 2647) still look fine. Minute waves i-ii-iii (2732-2702-2802-2741) are currently nearing a potential overlap at SPX 2732. We are not expecting this to occur. But if it does, it could change the short term count. Short term support is at the 2731 and 2656 pivots, with resistance at the 2780 and 2798 pivots. Short term momentum is displaying a positive divergence. Best to your Opex trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: uptrend