SHORT TERM: new highs, DOW +54
Overnight the Asian markets lost 0.2%. European markets opened lower but gained 1.5%. US index futures were higher overnight, and the market opened three points above friday’s SPX 1520 close. As trading began the market started moving even higher. At 10:00 the NAHB was reported slightly lower: 46 vs 47. The rally continued into the afternoon with nothing more than 1 to 2 point pullbacks. Around 2:30 the SPX hit 1531. It then pulled back to SPX 1528 before closing at 1531.
For the day the SPX/DOW were +0.55%, and the NDX/NAZ were +0.65%. Bonds lost 7 ticks, Crude gained 70 cents, Gold slipped $5, and the USD was higher. Medium term support moves up to the 1523 (for the first time) and 1499 pivots, with resistance now at the 1552 and 1576 pivots. Tomorrow: Housing starts, Building permits, and the PPI at 8:30. Then the FOMC minutes at 2:00.
The market opened higher today and continued to rally until breaking through the OEW 1523 pivot range in the last two hours of trading. As a result of clearing SPX 1525, and then the 1523 pivot range, it would appear Minor wave 4 bottomed at 1498. This count was carried on the DOW charts, and we are upgraded the SPX charts to the same count. It is a bit surprising Minor wave 4 pulled back less than 20 points, while the steepest part of Minor 2 was 50 points. Nevertheless, we can count a third wave underway from SPX 1498: 1525-1514-1531 thus far.
Short term support rises to the 1523 and 1499 pivots, with resistance now at the 1552 and 1576 pivots. Short term momentum ended the day slightly overbought. The short term OEW charts remain positive with the reversal level now at SPX 1519. Best to your trading!
MEDIUM TERM: uptrend new high SPX 1531
LONG TERM: bull market