SHORT TERM: gap up opening, DOW -42
The first two days of the week markets worldwide have seen selling, especially in Asia and Europe. The US had two gap down openings, but recovered more than half of the early morning decline each day by the close. Today markets settled higher in Asia, and mixed in Europe. The SPX gapped up to 2773 at the open, had closed at 2763, then dipped to 2764 by 10:30. After that the market worked its way higher to reach SPX 2775 by 1pm. Then pulled back to close at SPX 2767.
During yesterday’s decline the SPX dropped to 2743. This was an important level because the high of our Minute wave i was at SPX 2742. No overlap occurred, and the market has rallied 32-points from that low. Short term trend remains up unless those levels are broken to the downside. Short term support SPX 2741/42 and the 2731 pivot, with resistance at the 2780 and 2798 pivots. Short term momentum hit overbought during today’s high, then declined to neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend