SHORT TERM: market uptrend continues to eke out new highs, DOW +2
Overnight the Asian markets were all higher. Europe opened higher and closed +0.50%. US index futures were higher overnight, and at 8:30 Personal income was reported: +0.4% v +0.2%, and Personal spending reported: +0.5% v +0.7%. The market opened higher at SPX 1119 and moved up to 1122 in the first few minutes. At 10:00 New homes sales were reported lower: 355K v 400K, as was Consumer sentiment: 72.5% v 73.4%. The market pulled back on these reports but only to SPX 1116 by 10:30. Then the market, with the help of a declining USD, moved higher for the rest of the day to close near the highs. For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.70%. Bonds lost 4 ticks, Crude rallied $2.10, Gold was $2.00 higher, and the USD was lower. Support for the SPX remains at 1107 and then 1090, with resistance at 1133 and then 1168. Short term momentum remained around overbought for most of the day. Tomorrow, the weekly Jobless claims at 8:30, and then Durable goods at 10:00. Most markets will close early.
After monday’s gap up the SPX continues to work its way higher on light volume. Today’s push higher, into the SPX 1120’s, appears to have cleared the quite resilient 1107 OEW pivot. Next objective should be the 1133 pivot. Yesterday’s second revision to the Q3 GDP to +2.2% from the original +3.5% projection continues to be reported as proof of an economic recovery. However, when one views government GDP figures from 1948 graphically, (courtesy of Shadow Stats), there are no real signs of a recovery yet. Happy holidays, and best to your trading!
MEDIUM TERM: uptrend makes new high at SPX 1122
LONG TERM: bear market rally