SHORT TERM: gap down opening, DOW -83
Overnight the Asian markets gained 0.7%. Europe opened higher and gained 0.1%. US index futures were lower overnight. At 8:30 weekly jobless claims were lower, and the Philly FED was higher. The market opened at SPX 2700, after closing at 2709 yesterday. The decline continued until 10am when the SPX hit 2692 and leading indicators were reported higher. The market then rallied to SPX 2703 by 10:30,a but rolled over to a lower low at SPX 2682 around 1:30. Then the market rallied to SPX 2699 by 3:30 before ending the day at 2693.
For the day the SPX/DOW lost 0.45%, and the NDX/NAZ lost 0.80%. Bonds dropped 9 ticks, Crude slipped 25 cents, Gold slid $2, and the USD was higher. Medium term support remains at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Tomorrow is Options expiration.
The market gapped down at the open today, traded down to SPX 2682, then tried to rally. At SPX 2682 the market had pulled back 35-points from yesterday’s SPX 2717 high. Thirty-five points also happens to be equal to the previous pullback: SPX 2680-2645. No change in the short term count. Still looks like a Minor 3 underway, albeit quite a choppy one. A drop below 2665, however, would negate the that count. Short term support remains at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Short term momentum was quite oversold at today’s lows, then bounced. Best to your trading!
MEDIUM TERM: downtrend may have bottomed
LONG TERM: uptrend