Wednesday update

SHORT TERM: gap down opening, DOW +8

Overnight the Asian markets ended mixed. Europe opened lower and ended mixed as well. US index futures were lower overnight, and at 8:15 the ADP was reported lower: 177k v 255k. The market gapped down to SPX 2384 at the open after closing at 2391 yesterday. In the opening minutes the market bounced to SPX 2387, then pulled back further. At 10am ISM services was reported higher: 57.5 v 55.2. Just before 11am the SPX hit 2380, and then started to work its way higher. At 2pm the FED released its FOMC statement: https://www.federalreserve.gov/newsevents/pressreleases/monetary20170503a.htm. Just before the close the SPX hit 2390, then ended the day at 2388.

For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.35%. Bonds slid 8 ticks, Crude rose 5 cents, Gold dropped $17, and the USD was higher. Medium term support remains at the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: weekly jobless claims and the trade deficit at 8:39, then factory orders at 10am.

The market gapped down at the open today for the first time since April 18th. Despite the gap down the market remained in the 2385 pivot range, where it has traded for the past 5 days. Today’s pullback to SPX 2380, from 2398, registered on the smaller wave timeframe. We can now count seven waves up on the smaller timeframe, and three waves up on the larger. The market will need to reach/exceed SPX 2398 to start making this uptrend look impulsive again. If the decline continues, this 2+ week rally may have been just a B wave. Short term support is at the 2385 pivot and SPX 2369, with resistance at SPX 2401 and the 2411 pivot. Short term momentum hit oversold at today’s low, then bounced to above neutral. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

CHARTS: https://stockcharts.com/public/1269446/tenpp

Filed under: Updates