SHORT TERM: market nudges higher in quiet trading, DOW + 2
Overnight only three of the foreign markets we follow traded, and they were all higher. Europe was closed for the holiday. The US market opened lower trading down to 1488 by 10:00. After that it worked its way higher for the rest of the session, closing near the highs for the day at 1498. At the close the SPX/DOW gained 0.05%, and the NDX/NAZ added 0.40%. Bonds dropped over 3/4 point, Crude gained $1.80, Gold was $12.50 higher, and the Euro was higher.
It’s becoming increasingly clear that the SPX/WLSH/NDX/NAZ/R2K will join the DOW/NYA/TRAN in confirmed uptrends shortly. It would take an horrendous selloff from current levels over the next several days to avoid this event. When considering the continued worldwide demand for commodities, the CCI made a new high today, and the sharp rise in short term rates over the past several trading days. One would have to conclude that the worse is over for now, or the bears are on holiday vacation spending the money that they have yet to make. Which is also good for the economy. Support for the SPX remains at 1484 and then 1462, with resistance just overhead at 1506 and then 1530. Short term momentum is still overbought, and starting to display some negative divergences. There should be a pullback soon. Also of note, AAPL made a new all time high today, while most the tech leaders rose. And, the internals in many of the indices we follow continue to become more and more positive. Enjoy the holiday season!
MEDIUM TERM: correction ended at 1406, and most indices are uptrending
LONG TERM: bullish, it’s still a bull market