SHORT TERM: market rallies on election day, DOW +133
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.8%. US index futures were higher overnight, and the market opened higher at SPX 1420. The SPX had closed at 1417 yesterday. As the election polls continued to open across the US the SPX rallied to 1424 by 10:00, pulled back to 1420 by 10:30, then resumed its rally. Around noon the SPX hit 1433, and then began to pullback. Nearing the close the SPX hit 1427, then ended the day at 1428.
For the day the SPX/DOW were +0.90%, and the NDX/NAZ were +0.35%. Bonds lost 17 ticks, Crude gained $2.70, Gold rallied $31, and the USD was lower. Medium term support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Tomorrow: the Election results, then Consumer credit at 3:00.
The market opened higher today and continued to rally. Around noon the SPX challenged friday’s 1434 high, when reaching 1433, then pulled back. Again, just like thursday/friday of last week, the market appears to be signalling it wants to go higher. Yet, we still see the potential for one more sizeable pullback to align the major indices for the next uptrend.
Should the SPX break through the recent highs, reaching the OEW 1440 pivot, the pullback is not likely to occur. Should the market roll over from today’s high, or a bit higher tomorrow, then the downtrend is likely to bottom in the next few days. Either way, the next uptrend should be underway soon.
Short term support is at SPX 1422/27 and 1413/16, witth resistance at the 1440 pivot and SPX 1463/64. Short term momentum hit quite overbought today, then tailed off some. The short term OEW charts turned positive right after the open, with the swing level now around SPX 1422. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market