SHORT TERM: market gaps up and rebounds, DOW +67
Overnight the Asian market lost 0.7%. European markets opened lower and lost 1.0%. US index futures were higher overnight and the market gapped up at the open to SPX 1332. The market had closed at SPX 1326 yesterday. Within the first few minutes the market dipped to SPX 1329, then hit 1334 around 10:00. A small pullback followed to 1327 by 10:30. Then the market started a choppy rally that picked up some momentum in late afternoon. Heading into the close the SPX hit 1338, then ended the week at 1335.
For the day the SPX/DOW were +0.65%, and the NDX/NAZ were +1.15%. Bonds lost 11 ticks, Crude rallied $2.00, Gold added $6.00, 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 rebounded from extremely oversold yesterday to above neutral today. This morning the WLEI was reported lower yet again: 46.5% vs 47.0%.
The market gapped up today, from extremely oversold levels, breaking through initial resistance at SPX 1327/29. It then pulled back. Using that zone as support it rallied to the next resistance level at SPX 1335/36. After poking above it in the last hour of trading the market settled right in that zone. Good rebound today after yesterday’s sell off.
Short term support is now at SPX 1327/29 and the 1313 pivot, with resistance at SPX 1335/36 and 1342/47. The short term OEW charts remain with a negative bias, with the swing point now around 1337. Best to your weekend!
MEDIUM TERM: uptrend/downtrend inflection point
LONG TERM: bull market