SHORT TERM: market continues to drift higher, DOW +10
Overnight all the Asian markets were higher. Europe opened higher, but closed mixed. US index futures were slightly higher overnight and the market opened at SPX 1260. It had closed at SPX 1259 yesterday. After the opening minutes of trading the market started to drift higher. Around 1:30 the SPX hit its high for the day at 1263. The SPX then remained in a narrow one point range until the last hour of trading. A small pullback into the close ended the day with the SPX at 1260.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.15%. Bonds were up 38 ticks, Crude dropped 45 cents, Gold added $6.00, and the USD was lower. Support of for the SPX remains at 1240 and then 1222, with resistance at 1261 and then 1291. Short term momentum was slightly overbought and declining. Tomorrow, weekly Jobless claims at 8:30 then Chicago PMI and Pending homes sales around 10:00.
The market opened at the uptrend high of SPX 1260 and drifted higher to 1263 during the day. For the second day in a row the SPX traded in a very narrow range. In fact, the largest trading range over the past eight trading days has been only 8 SPX points. Short term momentum is now displaying a negative divergence after today’s high. Minor wave 3 has risen about 30 points, thus far, with only with small pullbacks of 6 and 8 points. A larger pullback would not be surprising with volume so light. Short term support is around SPX 1257 with stronger support at the 1240 and 1222 pivots. The market remains in overhead resistance at the OEW 1261 pivot. Best to your trading!
MEDIUM TERM: uptrend high SPX 1263
LONG TERM: bull market