SHORT TERM: new uptrend high, DOW +85
Overnight the Asian markets gained 0.4%. Europe opened higher and gain 0.5%. US index futures were higher overnight as well. At 8:30 weekly Jobless claims were reported higher: 366K vs 361K, Housing starts were reported lower: 746K vs 760K, but Building permits surged: 812K vs 755K. The market opened slightly higher at SPX 1407, bounced to 1409, then pulled back to 1404 by 10:00. The SPX had closed at 1406 yesterday. At 10:00 the Philly FED was reported still in contraction mode: -7.1 vs -12.9. Nevertheless, the market started to rally. The rally continued into the afternoon when the SPX hit 1417 around 2:30. Then it pulled back to SPX 1414 before closing at 1416.
For the day the SPX/DOW were +0.70%, and the NDX/NAZ were +1.10%. Bonds lost 8 ticks, Crude gained 85 cents, Gold rallied $9, and the USD was lower. Medium term support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum rose from neutral to quite overbought. Tomorrow, Consumer sentiment and Leading indicators at 10:00 on Options expiration friday.
The market opened quietly again today, rallied within 1 point of the uptrend high, then pulled back to support in the SPX 1402/03 area. After that it broke out of its recent trading range and made a new uptrend high as it hit SPX 1417. Then with short term momentum hitting extremely overbought the rally stalled.
The short term counts suggests Minute wave v of Minor 3 continues to unfold from SPX 1396. The market hit extremely overbought, short term, suggesting some sort of pullback or sideways activity should follow. Then the rally is likely to resume. Short term support is now at SPX 1413/15 and 1402/03, with resistance at SPX 1422 and the 1440 pivot. The short term OEW charts remain positive with the swing point now around SPX 1403. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market
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