FOR 1/6 SPX resistance, pivot &amp; supportResistance R3 1845.80, R2 1842.02, R1 1836.69Pivot Point 1832.91Support S1 1827.58, S2 1823.80, S3 1818.47 For Weekly 1/6 -1/10 SPX weekly resistance, pivot &amp; supportResistance R3 1866.32, R2 1857.80, R1 1844.62Pivot Point 1836.18Support S1 1822.18, S2 1814.48, S3 1801.22
The USA stock ending interesting split-week to start 2014. The USA Stock market started the week ending 2013 and closing within one point of all time new highs. Then it began 2014 with a gap down opening and finished the week negative in market. The last time the USA stock market had a down opening and a down week to start the year was 2008. All years, 2009 through 2013, had up openings and up weeks. This could be the signal for a bull market top this year. For the week the SPX/DOW were -0.3%, the NDX/NAZ were -0.8%, and the DJ World index was -0.50%. On the economic front it was a quiet week, which came in split. On the up tick: Case-Shiller, pending home sales, construction spending and the M1-multiplier. On the downtick: ISM manufacturing, auto sales, the WLEI and weekly jobless claims ticked up. Next week's reports will be highlighted by ISM services, the FOMC minutes and the Payrolls report.
Short term support is at the 1828 pivot and SPX 1814, with resistance at the 1841 pivot and SPX 1849. Short term momentum ended the week around neutral. The short term OEW charts are negative with the reversal level now SPX 1835.
With the recent Minor wave 1 topping at SPX 1849 it traveled 81 points. This makes looking for pullback levels relatively simple. A 23.6% Fib retrenchment occurs at SPX 1830, a 38.2% at SPX 1818, a 50% at SPX 1808, and a 61.8% at SPX 1799. The 1828 pivot just about covers the first two, SPX 1814 the next one, and SPX 1800 the last one. These are the three levels we will be observing during this pullback.
Support for the SPX remains at 1820, 1800 and then 1779, resistance at 1841 and then 1849.
Asian markets were mixed on the week for a net loss of 0.6%.
European markets were also mixed and ended overall unchanged.
The Commodity equity group were all lower losing 0.4%.
The DJ World index remains in an uptrend, but lost 0.5%.
Bonds continue their downtrend but gained 0.1%.
Crude sold off 5.9% this week as it looks like it is back in a downtrend.
Gold is trying to confirm an uptrend gaining 1.9% on the week.
The USD is uptrend gaining 0.7% on the week.
Monday: Factory orders and ISM services at 10am. Tuesday: the Trade deficit. Wednesday: the ADP index, FOMC minutes and Consumer credit. Thursday: weekly Jobless claims. Friday: the Payrolls report, Unemployment rate and Wholesale inventories. The FED has nothing else scheduled at this time. Wishing you all, and yours, a healthy and prosperous New Year!
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