SHORT TERM: market recovers, DOW +204
Overnight the Asian markets were mostly higher gaining 0.1%. Europe opened higher and rallied gaining 1.6%. US index futures were higher overnight, and at 8:30 the PPI was reported higher: +0.1% vs -1.0%. The market opened higher at SPX 1339 and began to rally. The SPX had closed at 1335 yesterday. Around 10:00 Consumer sentiment was reported lower: 72.0 vs 73.2. The rally continued until noon when the SPX hit 1354. After that it appeared to stall: maintaining a 2 point range until around 3:00. Then it popped a bit higher to SPX 1358, and ended the week at 1357.
For the day the SPX/DOW were +1.65%, and the NDX/NAZ were +1.50%. Bonds lost 2 ticks, Crude gained $1.00, Gold rallied $15, 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 ended the week quite overbought. Last night the FED reported an increase in the Monetary base: $2.65 tln vs $2.60 tln. Today the WLEI was reported higher: 47.8% vs 47.2%.
The market opened higher today, continuing its rebound off yesterday’s SPX 1325 low. The rally, however, has now carried a bit more than expected. After the 50 point, five wave, decline from SPX 1375-1325 the market has retraced more than 30 points to SPX 1358 in just over 24 hours. Bi-polar market, or a liquidity announcement over the weekend? Either way it still looks like a choppy uptrend. Will review all the charts this weekend. Best to you and yours!
MEDIUM TERM: choppy uptrend remains
LONG TERM: bull market