SHORT TERM: gap up opening DOW all time new high, DOW +126
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 1.9%. US index futures were higher overnight, and the market gapped up at the open to SPX 1533 and continued to rally. The SPX had closed at 1525 yesterday. At 10:00 ISM services were reported higher: 56.0 vs 55.2. The rally continued until 11:00 when the SPX hit 1542, a new uptrend high. Then the market consolidated its gains for the next two hours, in a two point range, before hitting 1543 at 1:30. After that a five point pullback to SPX 1538 just before a 1540 close.
For the day the SPX/DOW were +0.95%, and the NDX/NAZ were +1.40%. Bonds lost 4 ticks, Crude gained 65 cents, Gold added $1, and the USD was lower. Medium term support remains at the 1523 and 1499 pivots, with resistance at the 1552 and 1576 pivots. Tomorrow: the ADP index at 8:15, Factory orders at 10:00, then the FED’s Beige book at 2:00.
The market gapped up and over the SPX 1531 uptrend high today, then continued higher to 1543. It is quite amazing the US market continues to move higher with 70% of world’s indices in confirmed downtrends. Nevertheless price rules. We updated the charts this morning to reflect an ongoing Minor wave 5. After Minor wave 4 ended at SPX 1485, the market rallied to 1525, pulled back to 1501, (just above the 1500 trouble level), and has now rallied to 1543. We labeled this activity as Minute waves i and ii completed, with Minute iii underway. With the DOW at all time new highs, the market could keep this upside momentum going, as this uptrend has now extended to four months.
Short term support is at the 1523 and 1499 pivots, with resistance at the 1552 and 1576 pivots. Short term momentum hit extremely overbought today, and ended overbought. The short term OEW charts remain positive with the reversal level now at SPX 1520. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market