SHORT TERM: quiet day after stellar week, DOW +44
Overnight the Asian markets gained 0.9% – that was mostly Japan. European markets opened lower but gained 0.4%. US index futures were relatively flat overnight. At 8:30 the monthly Payrolls report came in about in line with expectations: +155K vs +146K, but the Unemployment rate rose to 7.8%. The market opened one point above yesterday’s SPX 1459 close, dipped, then bounced to 1464 by 10:00. At 10:00 Factory orders were reported flat: 0.0% vs +0.8%, but ISM services were reported higher: 56.1 vs 54.7. The market pulled back to SPX 1460 by 10:30, and then tried to rally. At 3:30 FED vice chair Yellen’s speech was released: http://www.federalreserve.gov/newsevents/speech/yellen20130104a.htm. Heading into the close the SPX hit 1468, then dipped to close at 1466.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were mixed. Bonds lost 2 ticks, Crude added 15 cents, Gold dropped $8, and the USD was flat. Medium term support remains at the 1440 and 1386 pivots, with resistance at the 1499 and 1523 pivots. Today the WLEI was reported lower: 54.9% vs 55.4%, and long term Investor sentiment remained bearish: 48.6% vs 48.6%.
The market opened relatively flat today, bounced around under yesterday’s high, then made a new uptrend high in the last hour of trading. It was a quiet day with the entire range only 8 SPX points. Lots to cover in the weekend update.
Short term support rises to SPX 1462/64 and the 1440 pivot, with resistance at SPX 1471/75 and the 1499 pivot. Short term momentum appears to be building toward another negative divergence. The short term OEW charts remain positive with the swing level now at 1441. Best to your weekend!
MEDIUM TERM: uptrend new high SPX 1468
LONG TERM: bull market