SHORT TERM: gap down opening then rebound, DOW +5
Overnight the Asian markets lost 0.6%. Europe opened lower and lost 0.6% as well. US index futures were lower overnight, and at 8:30 weekly jobless claims were higher plus the trade deficit was lower. The market gapped down to SPX 2624 at the open and continued to decline. The SPX had closed at 2635 yesterday. At 10am ISM services was reported lower. The decline continued until the SPX hit 2595 around 11am. Then the market started to rally. The rally rose all the way back to close the gap, when hitting SPX 2637 around 2:30. After that the market pulled back to close at 2630.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.10%. Bonds gained 5 ticks, Crude rose 55 cents, Gold added $7, and the USD was lower. Medium term support slips to the 2594 and 2575 pivots, with resistance at the 2632 and 2656 pivots. Tomorrow: monthly payrolls est. +188k.
The market gapped down at the open today from yesterday’s SPX 2636 close. It then dropped a total of 41 points from that close when bottoming at SPX 2595. After that the market rallied all the way back to SPX 2637 by 2:30. Volatile day traders market continues. We continue to observe a lot of three wave movements. Of late:  2658-2684-2613, and  2625-2661-2595. However the market is now approaching the two previous lows Feb 2533 and Apr 2554, with today’s drop below 2600. Let’s start looking for technical signals that could suggest an end to this multi-month correction. Short term support slips to the 2594 and 2575 pivots, with resistance at 2632 and 2656 pivots. Short term momentum ended the day around neutral. Best to your Payrolls trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend