SHORT TERM: rally continues, DOW +145
Overnight the Asian markets were all higher. Europe opened higher and closed +0.85%. US index futures were higher overnight. At 9:00 Case-Shiller reported housing prices -4.0% vs -3.6% yty. The actual data showed an uptick mtm: $138.84 vs $137.93. The market opened higher at SPX 1284. The SPX had closed at 1280 yesterday. Right after the open the market continued to rally. At 10:00 Consumer confidence was reported lower: 58.5 vs 60.8. The market hit SPX 1292 by 10:30, pulled back to 1289 by 11:00, and then resumed its rally. Around 2:30 the SPX hit 1296, pulled back to 1293 by 3:30, and then rallied to close at the high for the day 1297.
For the day the SPX/DOW were +1.25%, and the NDX/NAZ was +1.50%. Bonds lost 32 ticks, Crude rallied $2.205 Gold added $5.00, and the USD was lower. Support for the SPX jumps to 1291 and then 1261, with resistance at 1303 and then 1313. Short term momentum is quite overbought. Tomorrow, Pending home sales at 10:00, then a speech by FED governor Raskin in Wash, DC.
Yesterday’s rally continued today, again without the need for a gap up opening. The market entered the OEW 1291 pivot range again, but this time it cleared the pivot and ended the session at the upper end of the range. Yesterday it hit the lower end of the range and was turned back. The techs did well today, but the financials were mixed. Certainly would like to see them participate more in this rally. Short term OEW charts are again in the positive mode. The next objective would be for the SPX to clear the 1258-1299 range, and then, the 1303/1313 OEW pivots. This rally is looking like the straight up move we would expect at the beginning of an uptrend. Short term support is at SPX 1283 then the 1261 pivot. Resistance is obviously at the 1303/1313 pivots. Best to your trading!
MEDIUM TERM: downtrend low SPX 1258
LONG TERM: bull market