SHORT TERM: rally ready to resume?
Overnight the foreign markets were generally lower with europe coming in mixed. In the post market last night they continued to sell the ND/NQ futures, and as a result the NAZ/NDX gapped down at the open while the SPX/DOW was only down slightly. Immediately, the cyclical DOW/SPX commenced a rally carrying the NAZ/NDX with them. Thus, far the initial support levels have held for the SPX/DOW and the lower support levels have held for the NAZ/NDX. Short term momentum continues to be very oversold, typical of uptrend bottoms. This market continues to act well, and I’m expecting the intermediate term advance to resume. Best to your day!
INTERMEDIATE TERM: uptrend
LONG TERM: bullish