SHORT TERM: gap up opening takes market higher, DOW +37
Overnight the Asian markets gained 1.2%. Europe opened higher and gained 1.2% as well. US index futures were higher overnight. At 8:30 Q3 GDP was revised higher: +2.7% vs +2.0%, and weekly Jobless claims were lower: 393K vs 410K. The market gapped up at the open to SPX 1415 and continued higher until reaching 1420 by 10:00. The market had closed at SPX 1410 yesterday. At 10:00 Pending home sales were reported higher: +5.2% vs +0.3%. The market then quickly pulled back to SPX 1413, then rallied to 1418 by 11:00. The next pullback took the SPX to 1409 by 11:30. Then the market rebounded again. After a bounce to SPX 1418 by 2:00, the market pulled back to 1413 again by 3:30, then bounced into a 1416 close.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.60%. Bonds gained 1 tick, Crude rallied $1.30, Gold added $7, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Last night the FED reported a decline in New home prices: $278.9K vs $291.4K. Tomorrow: Personal income/spending and PCE prices at 8:30, then the Chicago PMI at 9:45. Also tomorrow a speech from FED governor Stein after the close.
The market gapped up at the open today to a new rally high, then continued higher to SPX 1420. After that we had a decent pullback to SPX 1409, and then the market tried to rally again. We can now count five waves up from SPX 1343: 1361-1351-1390-1377-1409. Then a notable decline to SPX 1385. And now, what appears to be another five waves in progress from SPX 1385: 1420-1409-. This looks to be the most obvious count.
Short term support is now at SPX 1413/16 and 1402/03, with resistance at 1422/27 and the 1440 pivot. Short term momentum hit quite overbought early, then vacillated around overbought for the rest of the day. The short term OEW charts remain positive, with the swing level now around SPX 1399. Best to your trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: bull market