SHORT TERM: new uptrend highs, DOW +3
Overnight the Asian markets gained 0.7%. European markets opened higher and gained 0.7% as well. US index futures were higher overnight. At 8:30 Retail sales were reported positive and higher: +0.8% vs -0.5%, plus the PPI was reported higher: +0.3% vs +0.1%. The market gapped up at the open to SPX 1409, touched 1410 in the opening minutes, and then pulled back. The market had closed at SPX 1404 yesterday. At 10:00 Business inventories were reported lower: +0.1% vs +0.3%. By 10:30 the SPX hit 1405 and tried to rally again. Around 12:00 the SPX hit 1410 again, and again began to pullback. Nearing the close the SPX hit 1401, then bounced to end the day at 1404.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.10%. Bonds lost 17 ticks, Crude gained 70 cents, Gold dropped $9, and the USD was higher. Medium term support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum was quite overbought today before declining. Tomorrow, the CPI at 8:30 along with the NY FED. Then at 9:15 Industrial production, and at 10:00 the NAHB housing index.
The market gapped up at the open today making a new uptrend high in the process. It then bounced around until around noon, after that it started to pullback. Despite the new uptrend high the market remains in its choppy drift higher. Currently there is nothing to add to the chart and count posted yesterday.
Short term support remains at SPX 1402/03 and the 1386 pivot, with resistance at SPX 1413/15 and 1422. Short term momentum was quite overbought early in the day, then ended below neutral. The short term OEW charts remain positive with the swing point now around 1398. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market