SHORT TERM: market makes new highs, DOW +47
Overnight the Asian markets gained 0.8%. Europe opened lower but gained 0.8%. US index futures were lower overnight, but the market opened flat at SPX 1517. In the opening minutes the SPX dipped to 1516 then rallied to 1520 just before 10:30. After a three point pullback just past 10:30, the market rallied to 1522 by 1:30. At 2:00 the Budget deficit was reported as a surplus: +$2.8 bln vs -$27.4 bln. A pullback then followed into a SPX 1519 close.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were -0.30%. Bonds lost 7 ticks, Crude gained 40 cents, Gold added $2, and the USD was lower. Medium term support remains at the 1499 and 1440 pivots, with resistance at the 1523 and 1552 pivots. Tomorrow: Retail sales and Export/Import prices at 8:30, then Business inventories at 10:00.
The market opened flat today, dipped, then made new uptrend highs at first SPX 1520, then 1522. Thus far this market has rallied from SPX 1498 last thursday to 1522 today, without even one 5 point pullback. Quite a steady grind higher. Should the short term SPX count be correct, Minor 3 concluding with Minor 4 to follow, we now see the lower range of the 1499 pivot as support. Should the short term DOW alternate count be correct, Minor 3 and 4 concluded and Minor 5 underway, we see the 1523 pivot range being cleared to the upside with the 1552 pivot range next.
Short term support remains at the 1499 pivot and SPX 1471/75, with resistance at the 1523 and 1552 pivots. Short term momentum hit quite overbought today then declined to near neutral. The short term OEW charts remain poistive with the reversal level now at SPX 1512. Best to your trading!
MEDIUM TERM: new uptrend high SPX 1522
LONG TERM: bull market