SHORT TERM: new uptrend highs, DOW +149
Overnight the Asian markets ended mixed. European markets opened higher and gained 1.0%. US index futures were higher overnight. At 8:30 monthly Payrolls were reported higher: 157K vs 155K, but the Unemployment rate rose 7.9% vs 7.8%. The market gapped up at the open for the first time since January 10th. After opening at SPX 1505 the market rallied to a new high at 1511 by 10:00. At 10:00 Consumer sentiment was reported higher: 73.8 vs 71.3, ISM manufacturing was reported higher: 53.1 vs 50.7, and Construction spending was higher: +0.9% vs -0.3%. After a small 3 point pullback to SPX 1508 the rally continued. Around 2:00 the SPX hit 1514, pulled back to 1511 by 3:30, then ended the week at 1513.
For the day the SPX/DOW were +1.05%, and the NDX/NAZ were +1.20%. Bonds lost 11 ticks, Crude added 15 cents, Gold rose $3, and the USD was lower. Medium term support jumps back to the 1449 and 1440 pivots, with resistance at 1523 and 1552 pivots. Today the WLEI was reported higher: 58.3% vs 57.2%.
The market gapped up at the open today, made a new high before 10:00, then made higher highs into the afternoon. With the SPX failing to turn the short term OEW charts negative, and then making new uptrend highs, we were clearly early in calling a potential end to Minor wave 3 at SPX 1510. Looks like Minor wave 3 can reach the OEW 1523 pivot range afterall. More on this in the weekend update.
Short term support jumps back to the 1499 pivot and SPX 1471/75, with resistance at the 1523 and 1552 pivots. Short term momentum rose from quite oversold yesterday to quite overbought today. The short term OEW charts remain positive with the reversal level now around SPX 1500. Enjoy your weekend!
MEDIUM TERM: new uptrend high SPX 1514
LONG TERM: bull market
Tony, much appreciated Update and excellent, as usual. I’m rather hoping that you’ll give us details in your Weekend Update as to why you thought the 1510 area might have been the end of 3. Was it the retrace level, or other action(s)? I’d sincerely like to know. I have trouble with the 23% retraces not panning out in my charts; virtually useless. If you think otherwise, please school me on this.
It was a fun week in the markets. Everyone have a great weekend. Will check back for Weekend Update and chat later.
Melinda (Who has fried eggs for brains right now.)
Nice analysis Tony! I really appreciate and enjoy all that you do here.
Regards,
Bill C
cheers Bill and Tore,
enjoy the weekend!
TAN: Guggenheim solar ETF making that perfect symmetric rather flat ABC until # 3 comences, I think.
Gap up continues if you ask me, ample nervousness in markets. Its human to resist change, either up and down…
In addition to Tony and his constant, brilliant crew, I really like Melinda; not just beacause she is a real human, but she is a good human ! In additoion to beeing an indicator of sentiment ,as a guide, I just hope she is stupid enoug to buy some Peixes, a handfull is equal to carther for college to her kids if all ends well ! But heck my, idol Kirk Kekorian only passed 8 grade, so maybe it isnt such a great idea ? Who knows, love you all !
LOL! Oh, thank you, torehund! (I think?) Your post is the best thing that’s happened to me all day! Couldn’t imagine this blog with out you. Too funny!
Melinda (who is sometimes stupid enough)