SHORT TERM: SPX closes over 1530, DOW +35
Stocks gapped up this morning on overnight buying but didn’t get very far. The SPX hit 1532 early, pulled back to 1526, then rallied to 1532 again in the last hour of trading to close above the 1530 resistance pivot. At the close the SPX/DOW were +0.30%, and the NDX/NAZ were +0.40%. Bonds rallied over 1/2 point, Crude was up $2.50, Gold was $5.00 higher, and the Euro rallied. Bonds and Crude up strongly in the same day!
With the SPX closing above the 1530 resistance pivot, there’s a good chance the uptrend is about to resume. Next resistance level is the all time high at 1556, with support remaining at 1506. Short term momentum is a bit overbought, but not near the excessive levels normally seen during uptrends. Friday the August core PCE will be reported, along with August construction spending, and several consumer reports. A good number might be just enough to ignite a continuation of the uptrend. Best to your evening!
MEDIUM TERM: bullish, targeting SPX 1620
LONG TERM: bullish.