SHORT TERM: oversold rally, DOW +60
Overnight the Asian markets lost 0.4%. European markets opened lower, but gained 0.2%. US index futures were lower overnight. At 8:30 Q3 GDP was reported higher: +3.1% vs +2.7%, and weekly Jobless claims were reported higher: 361K vs 343K. The market again opened one point higher, than yesterday’s SPX 1436 close. It then nudged up to SPX 1438 and pulled back to 1433 by 10:00. At 10:00 Existing home sales were reported higher: 5.04 mln vs 4.79 mln, Leading indicators were reported lower: -0.2% vs +0.2%, the Philly FED was reported higher: +8.1 vs -10.7, and FHFA housing prices were reported higher: +0.5% vs +0.2%. The market rallied to SPX 1439 by 10:30, pulled back to 1435 by 11:30, and then rallied again. Heading into the close the SPX hit 1444 and closed there.
For the day the SPX/DOW were +0.50%, and the NDX/NAZ were +0.15%. Bonds lost 1 tick, Crude slipped 10 cents, Gold dropped $20, and the USD was lower. Medium term support for the SPX shifts back to the 1440 and 1386 pivots, with resistance at the 1499 and 1523 pivots. Tomorrow: Personal income/spending, PCE prices and Durable goods orders both at 8:30. Then Consumer sentiment at 10:00 on this Options expiration friday.
The market opened about flat today, pulled back to make a lower low at SPX 1433, then reversed and rallied into the close. If the Minute wave iii of Minor 3 is subdividing, we are likely to see new uptrend highs soon. On the alternate bearish count, we may be forming a rising diagonal triangle, for Intermediate wave C of Major 2, with the touchpoints: 1439-1412-1448-1433-….
Short term support is at the 1440 pivot and SPX 1422/27, with resistance at SPX 1463/64 and 1471/75. Short term momentum rose from quite oversold today to near overbought. The short term OEW charts remain positive with the swing level now around 1431. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull/bear inflection range continues