Wednesday update

SHORT TERM: gap down opening then choppy, DOW -88

Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.3%. US index futures were lower overnight, and the market gapped down to SPX 2441 at the open. After that the market started to rebound, and at 10am new home sales were reported lower. By noon the SPX had hit 2449. Then it pulled back to SPX 2443 by 2pm, bounced back to 2449 by 3:30, then ended the day at 2444.

For the day the SPX/DOW lost 0.35%, and the NDX/NAZ lost 0.30%. Bonds gained 12 ticks, Crude rose 55 cents, Gold added $5, and the USD was lower. Medium term support remains at the 2444 and 2428 pivots, with resistance at the 2456 and 2479 pivots. Tomorrow: jobless claims at 8:30, then existing home sales at 10am.

The market gapped down at the open today. Gaps openings in both directions are typically characteristics of a correction. The market, however, opened at its low for the day SPX 2441, then bounced around into a 2444 close. Today’s decline does look like the start of the next leg down. Thus far for the SPX 2491 high we have observed three waves down: 2438-2474-2417, one wave up: 2455, now a new leg down. Thus far this correction has been quite orderly. Short term support is at the 2444 and 2428 pivots, with resistance at the 2456 and 2479 pivots. Short term momentum ended the day at neutral. Best to your trading!

MEDIUM TERM: downtrend probably underway

LONG TERM: uptrend

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

Filed under: Updates