Thursday update

SHORT TERM: gap down opening then rebound, DOW -24

Overnight the Asian markets gained 0.3%. Europe opened lower and lost 0.2%. US index futures were lower overnight. At 8:30 weekly jobless claims were reported lower: 236k v 238k, and the PPI was reported higher: 0.5% v  -0.1%. The market gapped down to SPX 2393 at the open, then declined to 2382 by 10:30. The SPX had closed at 2400 yesterday. At that 18-point decline the market started to rally. Around 2:30 the SPX hit 2396. Then backed off to close at SPX 2394.

For the day the SPX/DOW lost 0.15%, and the NDX/NAZ lost 0.15%. Bonds gained 6 ticks, Crude rose 45 cents, Gold added $5, and the USD was lower. Medium term support remains at the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: the CPI and retail sales at 8:30, then consumer sentiment and business inventories at 10am.

The market gapped down at the open today for the first time since last Wednesday. That gap down took the market to SPX 2380 before the rally to 2404 this week. Today’s gap down opening took the market to SPX 2382 before reversing and rallying. With today’s decline into support, the low-2380’s, a third wave high at SPX 2404 was confirmed on both short term timeframes we are tracking. This suggests if this uptrend was a B wave, it probably ended at SPX 2404. If an impulse wave, a 5th wave to new highs should be underway shortly. The parameters remain: support low-2380’s, breakout 2404+, breakdown 2361-. Short term support is at the 2385 pivot and SPX 2361, with resistance at the 2411 and 2428 pivots. Short term momentum was quite oversold at today’s lows then rebounded to neutral. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

Filed under: Updates