SHORT TERM: gap up opening sold then rebound, DOW +171
For the first three days of the week the Asian markets lost 0.4%, and the European markets lost 1.3%. US markets were closed Monday, had a gap down opening on Tuesday hitting SPX 2617 before rebounding in the last hour. Then had the above mentioned gap up opening today, which was sold until the SPX made lower low at 2613. Then the market rebounded in the afternoon.
Early Tuesday the end of month US-China trade meeting was reported cancelled. Kudlow came on CNBC in the last hour to say that report was false. Market is obviously still hostage to that important trade deal. Technically. The decline sets up a potential further drop to SPX 2604. This would give the SPX a potential 4th wave as long as it rallies to 2675 afterwards. It could also begin another avalanche if the SPX drops below 2520. This is were the first wave up of this rally ended. Inflection point remains with specific parameters for SPX price now: 2520, 2603, and 2675.
Short term support is at the 2632 and 2594 pivots, with resistance at the 2656 and the 2731 pivots. Short term momentum displays a positive divergence at today’s lows. Best to your trading!
MEDIUM TERM: uptrend 60% probable
LONG TERM: uptrend 60% probable