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