SHORT TERM: volatility continues, stocks surge DOW +247
Stocks gapped up today at the opening as a European rally sent the stock index futures higher. At the open the SPX quickly rallied to 1444, then pulled back to 1438 by 10:30. Finding support at that long term pivot another rally carried the SPX to 1450 by noon, spurred by buying in the tech sector. Another pullback to 1442 by 2:00 ignited a rally into the close, as the SPX and the general market recouped nearly all of yesterday’s decline. At the close the SPX/DOW were +2.05%, and the NDX/NAZ rose +2.70%. Bonds reversed an earlier rally to close 1/4 point lower, Crude rallied $1.70, Gold was $2.50 higher, and the Euro was higher as well. This morning we mentioned that if SPX 1438 held a rally to the next pivot of 1462 was possible. It did hold and the market did rally to the long term 1462 pivot, all in one day. With a SPX close of 1464, 1462 is now again support with 1438 next. Resistance is now 1484 and then 1506. Short term momentum is again overbought, after being extremely oversold at yesterday’s close. The wild ride in this market for the past few months continues. Best to your evening!
MEDIUM TERM: correction
LONG TERM: bullish.