SHORT TERM: consolidation day, DOW +15
Overnight the Asian markets rallied gaining 2.4%. Europe opened higher and gained 0.4%. US index futures were higher overnight as well. At 8:30 monthly Payrolls were reported lower than expected (+135K): 96K vs 163K, but the Unemployment rate dropped: 8.1% vs 8.3%. The market opened at SPX 1433, one point higher than yesterday’s close. In the first few minutes the SPX hit 1437, entering the OEW 1440 pivot range, then began to pullback. Around 10:00 the SPX hit its low for the day at 1434. Then it went into a three point trading range for the rest of the day, until it rose into a SPX 1438 close.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were mixed. Bonds gained 7 ticks, Crude added 85 cents, Gold rallied $35, and the USD dropped. Medium term support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Last night the FED reported the Monetary base declined: $2.652 tln vs $2.690 tln. Today the WLEI was reported higher yet again: 51.0% vs 50.6%. The economy is growing.
The market opened slightly higher today, made a new bull market high, then went sideways until hitting a new high at the close. In the meantime the extreme short term overbought condition began to decline a bit. After yesterday’s big rally some consolidation, and even a small pullback, is quite normal. With the SPX entering the OEW 1440 pivot range today we can expect some resistance at this level. The market has not been this high since the spring of 2008. Lots to review this weekend for the update. Enjoy your weekend!
MEDIUM TERM: new uptrend high
LONG TERM: bull market