SHORT TERM: rally quiets down after a morning surge
Stocks opened higher today, rallying to new bull market highs for most of the indices within the first half hour. The SPX hit 1536, exceeding the long term EW pivot of 1530 by several points. This is nothing special, but since the next pivot is only at 1553, it’s important at this stage of the uptrend. Today’s morning pop in most of the indices, suggests the uptrend is continuing as defined in the earlier post. On that push higher short term momentum was quite overbought. Then until around 1:30 the SPX pulled back to 1528, found some support and rallied into the close. At the close the SPX/DOW were mixed, and the NDX/NAZ rallied 0.50%. Techs continue to lead. Bonds closed down a few ticks, Crude reversed gaining 70 cents, Gold rallied $8.00, and the Euro was higher. Short term momentum has now eased back to neutral. Tomorrow, before the open, the employment report will be released, plus Core PSE, and then the ISM report at 10:00. Best to your evening!
MEDIUM TERM: cautious, and targeting SPX 1553
LONG TERM: bullish.