SHORT TERM: consolidation day, DOW -21
For the first three days of the week the Asian markets gained 0.9%, and the European markets gained 1.5%. The US market started the week at SPX 2707, dipped on Monday to 2699 before making a new uptrend high at 2725. Tuesday: a higher open and the SPX hit 2739. Wednesday: a lower open, dip to SPX 2724, then range bound for the rest of the day.
Not much change in the squiggle chart, except Micro 3 (orange) has hit a new high at SPX 2739. We have noticed however, the market appears to be stalling within the OEW 2731 pivot range. There is a negative divergence hourly, and negative divergences daily on all four major indices (SPX/DOW/NDX/NAZ). If we have seen the best of Micro 3 we could get a 30+ point pullback next for Micro 4. The uptrend won’t end, it will just be a pullback. Short term support is at the 2731 and 2656 pivots, with resistance at the 2780 and 2798 pivots. Short term momentum has that negative divergence and ended the day at neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend 80% probable