SHORT TERM: market ekes out a gain in light trading, DOW +6
Overnight the Asian markets followed the negative close in the US yesterday and were all lower. Europe came in about flat on the day, yet US index futures rallied overnight. At 8:30 when the November new homes sales were announced to have declined 9% the futures sold off. However, at 9:30 the market still gapped up at the opening, hitting SPX 1488 by 10:00. When the Chicago PMI was released higher than expected, a pullback to 1478 followed. Then another rally fell short of reaching resistance at the 1484 pivot, and the market pulled back again to 1472 by 1:00. After that the market drifted higher into the close. At the close the SPX/DOW were +0.10%, and the NDX/NAZ were mixed. Bonds rallied nearly 1 1/2 points, Crude was off 55 cents, Gold was $10.50 higher, and the Euro was higher. Support for the SPX remains at 1462 and then 1438, with resistance at 1484 and then 1506. Short term momentum put in a positive RSI divergence at today’s lows, and the market rallied some. A good sign going into the final trading day of the year on monday. Most of the US indices are now uptrending, as well as, many of the foreign indices. Expecting these uptrends to continue in the weeks ahead. Have a Happy and Prosperous New Year!
MEDIUM TERM: correction ended at 1406, indices uptrending
LONG TERM: bullish