SHORT TERM: gap down opening, DOW -138
For the first three days of the week the Asian markets have declined 1.4%, and the European markets have declined 2.1%. It has been a volatile week in the US so far. Monday: a rally to SPX 2843 was quickly followed by a decline to 2820. On Tuesday the market gapped up, hit SPX 2843 again, and then gapped down on Wednesday hitting SPX 2802. Then before the day was over the SPX rallied to 2822, and closed at 2818.
The decline from last Tuesday’s uptrend high at SPX 2863 continues to work its way lower. First we had three waves down to SPX 2820: 2826-2843-2820. Then a rally to SPX 2843. Now a straight line down to SPX 2802. If we count the first decline, 2863-2820, as an A. The rally to 2843 as a B. Now this decline as a C. C equals A at SPX 2800. Which is also close to our pullback targets of the low-upper 2790’s, and right in the range of the 2798 OEW pivot. The short term chart indicators suggest a bit more downside. But the decline is already sufficient for a Minute ii wave of Minor 3.
Short term support is at the 2798 and 2780 pivots, with resistance at the 2835 and 2858 pivots. Short term momentum ended the day at neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend