SHORT TERM: mixed session ends the week, DOW +81
Overnight the Asian markets lost 0.3%. Europe opened higher but closed mixed. US index futures were lower overnight, until the Payrolls report came in better than expected at 8:30: +146K vs +171K. The market opened higher at SPX 1418, and hit 1420 in the first few minutes. After that the market started to pullback. At 10:00 Consumer sentiment was reported lower: 74.5 vs 82.7. The pullback continued until 11:00 when the SPX hit 1411. Then the market tried to rally. At 3:00 Consumer credit was reported higher: +$14.2 bln vs +$11.4 bln. Heading into the close the SPX hit 1418 and closed there.
For the day the SPX/DOW were +0.45%, and the NDX/NAZ were -0.50%. Bonds lost 10 ticks, Crude slipped 20 cents, Gold rose $6, and the USD was higher. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Today the WLEI was reported slightly higher: 53.6% vs 53.4%. Investor sentiment was recently reported bearish: 48.6% vs 49.9%.
The market opened higher today, broke through the SPX 1406-1416 trading range, then hit 1420 before heading down to 1411. The upside breakout was a positive, suggesting this rally, from SPX 1343 and recently 1398, is resuming. Now we enter the interesting part of this probable uptrend. More on this in the weekend update.
Short term support moves up to SPX 1413/16 and 1402/03, with resistance at SPX 1422/27 and the 1440 pivot. Short term momentum ended the week overbought. The short term OEW charts remain positive with the swing level now at SPX 1409. Best to your weekend!
MEDIUM TERM: uptrend probably underway
LONG TERM: bull market nearing inflection point