SHORT TERM: rally continues, DOW +115
Overnight Asian markets gained 1.3%. European markets opened higher and gained 1.2%. US index futures were higher overnight, and at 8:30 the NY FED was reported lower: 2.3 vs 17.1. Then at 9:15 Industrial production was reported lower: -0.1% vs +1.1%. The market opened higher, nonetheless, at SPX 1333, rose to 1335, dipped to 1332, and then started to rise. At 10:00 Consumer sentiment was reported lower: 74.1 vs 79.3. The market continued to rise gradually, with only 3 to 4 point pullbacks along the way. Heading into the close the SPX hit 1343 and closed there.
For the day the SPX/DOW were +1.00%, and the NDX/NAZ were +1.15%. Bonds gained 11 ticks, Crude added 5 cents, Gold slipped $1.00, and the USD was lower. Support for the SPX remains at the 1313 and 1303 pivots, with resistance at the 1363 and 1372 pivots. Short term momentum hit overbought during today’s advance. Last night the FED reported a rise in the Monetary base. Today the WLEI declined again, to a lower contracting low: 47.0% vs 47.8%.
The market opened higher today, cleared the high for the week at SPX 1336, then ran into resistance in the 1342/47 zone. Of the three short term counts we have been following: 1. the zigzag was eliminated, 2. the Minor 1 and irregular Minor 2 was opted out of in favor of, 3. a Minor wave 1 to SPX 1336 and a Minor 2 to 1307. Minor wave 3 continues to appear to be ongoing following last week’s WROC buy signal. Short term support now rises to SPX 1335/36 and then 1327/29. Short term resistance is at SPX 1342/47 and then the 1363 pivot. Best to your weekend!
MEDIUM TERM: uptrend may be underway
LONG TERM: bull market