SHORT TERM: core inflation up 2.1% last 12 months: still moderate
Overnight the Asian markets followed NY and rallied strongly: up 2% – 3% across the board. Europe came in about 1.25% higher and our indices gapped up at the open. The short term overbought condition, mentioned yesterday, came into play and stocks pulled back some right after the open. The operative EW pivots: NAZ 2094..2109..2153..2177 and SPX 1226..1240..1254..1268, which have contained the market for a couple of weeks, have both been exceeded to the upside with todays gap up opening. Therefore we’ll notch them up to the next level: NAZ 2109..2153..2177..2200 and SPX 1240..1254..1268..1281. NAZ 2153 and SPX 1254 should now provide support, with NAZ 2200 and 1281 acting as resistance. All of the EW pivot points are posted on the respective daily charts for all four major indices: NAZ/NDX/SPX/DOW. Short term momentum remains overbought, and still expecting some sort of pullback from current levels. Have a great weekend!
INTERMEDIATE TERM: looks to have bottomed and reversing upward.
LONG TERM: bullish