SHORT TERM: new bull market highs, DOW +62
Overnight the Asian markets lost 0.2%. Europe opened lower and lost 0.4%. US index futures were higher/lower overnight, and the market opened unchanged at SPX 1486. Right after the open the market started to pullback. At 10:00 Existing home sales were reported lower: 4.94 mln vs 5.04 mln. The pullback continued until 10:30 when the SPX hit 1481. Then the market started to rally. The rally continued throughout the afternoon with only 1 to 2 point pullbacks. Heading into the close the SPX hit 1493 and closed there.
For the day the SPX/DOW were +0.45%, and the NDX/NAZ were +0.20%. Bonds gained 5 ticks, Crude added 65 cents, Gold rallied $6, and the USD was lower. Medium term support remains at the 1440 and 1386 pivots, with resistance at the 1499 and 1523 pivots. Tomorrow: FHFA housing prices at 9:00.
The market opened flat today and then had a small pullback to SPX 1481. This pullback fit within the short term count we have been tracking. From the SPX 1398 Minor wave 2 low we have counted a Minute i to 1468, then a Minute ii to 1452. During the current Minute iii advance we have counted a Micro 1 at SPX 1473, Micro 2 at 1464, Micro 3 at 1486 and Micro 4 today at 1481. Micro wave 5 is currently underway and hit the next resistance area at the OEW 1499 pivot range, (+/- 7 points), on the close. When this small wave completes, it should complete Minute iii, which should then lead to a 10+ point pullback for Minute wave iv. Then another advance for Minute v, possibly to the OEW 1523 pivot, should complete Minor 3. The potential uptrend target of the OEW 1552 pivot remains on track.
Short term support remains at SPX 1471/75 and 1462/64, with resistance at the 1499 and 1523 pivots. Short term momentum is again displaying a developing negative divergence. The short term OEW charts remain positive with the swing level now around SPX 1475. Best to your trading!
MEDIUM TERM: new high at SPX 1493
LONG TERM: bull market