SHORT TERM: consolidation day, DOW +25
Overnight the Asian markets gained 0.6%. European markets opened higher and gained 0.4%. US index futures were relatively flat overnight. The market opened 1 point higher than yesterday’s SPX 1416 close, and pushed to 1418 in the first few minutes. Then it started to drift downward. At 10:00 Consumer sentiment was reported higher: 73.6 vs 72.3, and the Leading indicators were reported higher: +0.4% vs -0.3%. Around 10:30 the market touched SPX 1415 and tried to rally. Heading into the close the SPX hit 1419 and then ended the week at 1418.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.45%. Bonds gained 4 ticks, Crude rose 55 cents, Gold added $2, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum declined from extemely overbought. Last night the FED reported a rise in the Monetary base: $2.70 tln vs $2.69 tln, and a decline in the M1-multiplier 0.851 vs 0.864. Today the WLEI was reported nearly back to neutral: 49.4% vs 48.7%.
The market opened marginally higher today, made a new uptrend high, and then went sideways for the rest of the day until the close. This was probably the quietest options expiration friday in history: a four point range. As the market was going sideways it was working off the extreme short term overbought condition during yesterday’s rally. During the day we added seven new charts to the public charts list. DSX and YHOO stocks, plus five tracking ETFs: CAF, DDM, SMH, TBF and YCS. Enjoy!
Short term support remains at SPX 1413/15 and 1402/03, with resistance at SPX 1422 and the 1440 pivot. Short term momentum declined towards neutral today, but closed overbought. The short term OEW charts remain positive from under SPX 1370 with the swing point now around 1406. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market
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