SHORT TERM: market gaps up on GM/UAW pact, DOW +65
Overnight the Asian markets were mixed, but Europe came in 0.80% higher on the GM/UAW settlement. It was announced at 3 AM. The market gapped up on the news despite a worse than expected durable goods report. Within the first few minutes the SPX hit 1526, and the NDX made another bull market high. The only index making new bull market highs during this uptrend, thus far. Bonds are down about 1/2 point, Crude is up 30 cents, Gold $1.00 higher, and the Euro is lower.
Support for the SPX remains at 1506 and resistance at 1530. Short term momentum is rising into slightly overbought levels. Yesterday’s early selling tested support at 1506. The market held and has started to rally. This low should have completed Micro wave 4, as labeled on the charts. Expecting the market to again try to break through resistance at 1530, which has been a bit formidable of late. With the FED in accommodation mode, futures suggest another rate cut in late October. The Techs should continue to lead the way higher. They are quite overbought at the moment. Best to your trading!
MEDIUM TERM: bullish, targeting SPX 1620
LONG TERM: bullish