SHORT TERM: US pulls of out Iran nuclear deal, DOW +3
Overnight the Asian markets gained 0.5%. Europe opened lower and lost 0.2%. US index futures traded lower overnight, and the SPX opened 6 points below yesterday’s 2673 close. After a dip to SPX 2662 in the opening minutes the market traded to 2676 by 11:30. Then the SPX dropped to 2660 on rumors the US would pull out of the Iran nuclear deal. When it was announced it was true, the market rallied to SPX 2672 by 2:30. Another decline followed, but this time to SPX 2655 just before 3pm. Quite a choppy day within a 20 point range. Then the market rallied into the close to end the day at SPX 2672.
For the day the SPX/DOW were mixed, and the NDX/NAZ were mixed. Bonds dropped 6 ticks, Crude slid $1.00, Gold was flat, and the USD was higher. Medium term support remains at the 2656 and 2632 pivots with resistance at the 2731 and 2780 pivots. Tomorrow the PPI at 8:30, and wholesale inventories at 10am.
The market traded lower overnight in an anticipation that the US would pull out of the Iran deal. At 2pm today Trump’s uncanny streak of campaign promises kept, notched another one. The market was quite choppy all day and didn’t panic on the news. In fact the economy is just humming along despite all the short term news glitches. Today job openings were reported at a record high, while unemployment is already at 3.9%. No slowdown in the labor market. Monday’s rally to SPX 2683 double topped the 83/84 resistance area noted in the weekend update. And the pullback, thus far, is to today’s low at SPX 2655 (2656 pivot). If tomorrow takes out today’s high, the market could be resuming the rally from SPX 2595. Short term support remains at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Short term momentum was oversold at the low then rebounded above neutral. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend