SHORT TERM: stocks rally, bounce around, but hold gains, DOW +100
The market gapped up this morning on news of a settlement with the UAW strike. Their first strike in over 30 years. The SPX rallied to 1526 within the first half hour, pulled back to 1522, and then rallied again to hit 1528 by 11:30. Failing to break through resistance at 1530 the SPX again pulled back making new lows for the day at 1519 by 2:00. The autos, which gapped up this morning, had pulled back until about 1:00. Then GM (+9%) started to rally, taking out its highs for the day, and taking the market with it. Just past 3:00 the SPX made another attempt at 1530, reaching 1529. But a pullback into the close ended that opportunity. At the close the SPX/DOW were +0.60%, and the NDX/NAZ were +0.55%. Bonds closed a few ticks lower, Crude gained $1.00, Gold was off about $4.00, and the Euro was slightly lower.
Support remains at 1506 for the SPX with resistance at 1530. Short term momentum did get overbought early in all sectors, pulled back to neutral, and then started rising again. The long term pivot point at SPX 1530 is clearly being sold by many traders. The market rallied through that level last wednesday, pulled back, and has spent a week trying to get through it again. Looks like the market may have to gap through it get the uptrend moving in earnest. Meanwhile the Tech NDX keeps making new highs every day, and the DOW crossed 13,900 today for the first time since July. Tomorrow jobless claims, the Q2 GDP revision and Aug new home sales. Best to your evening!
MEDIUM TERM: bullish
LONG TERM: bullish