thursday update

SHORT TERM: overnight buying drives market higher, DOW +285

Overnight all the Asian markets were higher. Europe opened higher and closed +3.10%. US index futures were sharply higher overnight as well. At 8:30 weekly Jobless claims were announced improving: 460K v 474K, and Q1 GDP was revised downward: +3.0% v +3.2%. The market gapped up at the open to SPX 1081 and continued to rally. It had closed at SPX 1068 yesterday. By 10:30 the SPX hit 1095 clearing the daily high for the past week, but not the OEW 1090 pivot. After several attempts to move higher the SPX pulled back to 1089 by 1:00. The next rally attempt was successful as the market borke above the 1090 pivot and traded as high as 1103 where it closed.

For the day the SPX/DOW were +3.05%, and the NDX/NAZ were +3.70%. Bonds lost 1 point and 4 ticks, Crude rallied $3.20, Gold lost $2.00, and the USD was lower. Support for the SPX moves up to 1090 and then 1058, with resistance at 1107 and then 1136. Short term momentum was hitting overbought at the close. Tomorrow is the last trading day of the month in the US. At 8:30 Consumer spending/income will be reported, then at 9:45 the Chicago PMI, and at 10:00 Consumer sentiment.

A strong rally from the open helped the SPX recapture the OEW 1090 pivot for the first time in a week. Yesterday the SPX had trouble getting through this pivot and sold off. Today it had a rising Euro and declining Bond market to aide the rally. The USD, btw, may have recently hit the high of its seven month uptrend as the Euro looks to have made a double bottom in the 121+ area. Today’s rally helps to confirm the Intermediate wave A low at SPX 1041. The OEW short term charts are positive again. Tomorrow may likely be a light volume day considering the monday holiday. Best to your trading!

The blog and entire was down for some reason most of the day until now.

MEDIUM TERM: downtrend

LONG TERM: bull market


About tony caldaro

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