Thursday update

SHORT TERM: higher open, pullback, then choppy, DOW -29

Overnight the Asian markets were mixed. Europe opened higher and gained 0.1%. US index futures were higher overnight, and at 8:30 jobless claims were reported higher. The market opened 5-points above yesterday’s SPX 2444 close, ticked up to 2450, then began to pullback. Just past 10am existing home sales were reported lower, and the SPX dropped below yesterday’s low when hitting 2439. After a bounce to SPX 2447 by 11am, the SPX made a lower low at 2436 by 11:30. After that the SPX rallied to 2445, then pulled back to end the day at 2439.

For the day the SPX/DOW lost 0.15%, and the NDX/NAZ lost 0.20%. Bonds lost 7 ticks, Crude dropped 75 cents, Gold slipped $4, and the USD was higher. Medium term support drops to the 2428 ad 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: durable goods at 8:30, then a speech from FED chair Yellen at Jackson Hole.

The market opened higher today, took out yesterday’s SPX 2449 high, then two hours later took out yesterday’s SPX 2441 low. After that the market went into a trading range for the rest of the day. No change in the short term count from SPX 2491. Three waves down to SPX 2417, one wave up to SPX 2455, and now a new wave down to SPX 2436 so far. Would expect this current decline to break last week’s SPX 2417 low before any sizeable counter rally. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum  touched oversold at today’s low then bounced slightly above it. Best to your Jackson Hole trading tomorrow.

MEDIUM TERM: downtrend probably underway

LONG TERM: uptrend

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

Filed under: Updates