SHORT TERM: DOW makes new bull market high, DOW +69
Overnight the Asian markets ended flat. European markets opened lower but closed +0.4%. US index futures were higher overnight, and at 8:30 the Trade deficit was reported slightly lower: -$42.0 bln vs -$42.9 bln. The market opened opened one point above yesterday’s close at SPX 1430. Then pulled back to SPX 1429 before starting to rally. At 11:30 the SPX hit 1438, one point below yesterday’s bull market high, and then began to pullback. Heading into the close the SPX touched 1432 around 3:30, then closed at 1434.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were mixed. Bonds lost 3 ticks, Crude added 45 cents, Gold rose $6, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Tomorrow, Export/Import prices at 8:30 then Wholesale inventories at 10:00. Also the FED starts its two day FOMC meeting.
The market opened relatively flat this morning, rallied to within 1 point of the bull market high, (the DOW made a new high), then without a good showing from the Tech sector eased back into the close. The SOX, for example, has not made a new uptrend high since mid-August, and AAPL has been in pullback mode since early yesterday. Yesterday’s SPX 1439 high does look like the end of Minute wave iii, and today’s SPX 1429 low the end of Minute iv. However, the market did not close high enough to rule out a retest, or even a pullback to short term support.
Support for the SPX remains at 1422/27 and 1413/16, with resistance at the 1440 pivot and 1463/64. Short term momentum rose from yesterday’s oversold level and spend most of the day around neutral. The short term OEW charts remain positive from SPX 1412 with the swing level now around 1424. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market