Tuesday update

SHORT TERM: gap down opening then choppy, DOW -48

Overnight the Asian markets lost 0.3%. Europe opened lower and lost 0.6%. US index futures were lower overnight, and the market gapped down at the opening to SPX 2429. In the opening minutes the SPX hit the 2428 pivot and then started to rebound. At 10am the SPX reached 2435, and went sideways for a few hours. Around 2:30 the SPX closed the gap at 2436 then started to pullback again. Then heading into the close the market was back near the lows, closing at SPX 2429.

For the day the SPX/DOW lost 0.25%, and the NDX/NAZ lost 0.35%. Bonds gained 11 ticks, Crude rose 85 cents, Gold rallied $13, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2479 pivots. Tomorrow: consumer credit at 3pm.

The market gapped down at the open today for the first time in three weeks. However, just after the open the market bottomed and started to rebound. The last gap down opening, you may recall, was the Comey memo news on May 17th. At today’s low the market had pulled back 12-points from the 2440 all-time high. The pullback was sufficient to trigger a quantified short term reversal on the smallest timeframe. Therefore, we now have 4 waves on the shortest timeframe, and just one wave on the larger. Expecting higher highs after this pullback concludes. Short term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2479 pivots. Short term momentum hit quite oversold this morning, rebounded to neutral, then ended the day oversold. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

Filed under: Updates