SHORT TERM: stocks open higher right at resistance, DOW +25
Overnight the Asian markets were all higher, with Australia’s ASX, Hong Kong’s HSI and India’s BSE all posting new highs. Europe came in about 0.60% higher as well, and the market rallied at the open. Within the first few minutes the SPX poked above 1530 to 1532, then pulled back some. Bonds are up nearly 1/4 point, Crude is up $1.25, Gold is up $1.25, and the Euro is higher.
Before the open Q2 GDP was revised slightly lower to +3.8%, Q3 GDP is currently expected at 2.3%. Jobless claims came in a bit lower than expected; new home sales also came in lower than expected, dropping 8.3% in August, to the lowest level since 2000. The SPX is trading right at resistance of 1530, next resistance is 1556. Support remains at 1506. Short term momentum is slightly overbought. Best to your trading!
MEDIUM TERM: bullish, targeting SPX 1620
LONG TERM: bullish.