SHORT TERM: selloff then rebound, DOW -64
Overnight the Asian markets open gained 0.2%. European markets opened also gained 0.2%. US index futures were lower overnight, and the market opened 4 points below yesterday’s SPX 2648 close. At 10am ISM , construction spending, and auto sales were all reported lower. This offsets yesterday’s reports which showed personal income/pending, core inflation and the Chicago PMI all rose. By 1pm the SPX had dropped to 2625, and then started to rebound. After that the market rallied into the close to the OEW 2656 pivot again. The close was SPX 2655.
For the day the SPX/DOW were mixed, and the NDX/NAZ gained 1.05%. Bonds lost 7 ticks, Crude dropped $1.15, Gold slid $9, and the USD was higher. Medium term support is at the 2632 and 2594 pivots, with resistance at the 2656 and 2731 pivots. Tomorrow: the ADP at 8:15, then the FOMC statement at 2pm.
The market opened lower today, continuing yesterday’s decline from SPX 2683. After hitting SPX 2625 around 1pm the market rallied for the first time this week. Clearly this remains a day traders market with a negative corrective bias. From the April 2717 high we count three waves to SPX 2613. Then a rally to SPX 2683. Followed by a decline to SPX 2625 this afternoon. Choppy action. The total correction continues to look like a double three/triangle. Short term support is at the 2632 and 2594 pivots, with resistance at the 2656 and 2731 pivots. Short term momentum rose from extremely oversold to just below overbought. Best to the often volatile FOMC trading tomorrow.
MEDIUM TERM: downtrend
LONG TERM: uptrend