SHORT TERM: another gap up opening, DOW +112
Overnight the Asian markets lost 0.5%. Europe opened higher and gained 0.3%. US index futures were higher overnight. At 8:30 Durable goods orders were reported higher: +5.7% vs -4.9%. At 9:00 Case-Shiller was reported at 6 year highs: +8.1% vs +6.9%. The market gapped up at the open to SPX 1558. The SPX had closed at 1552 yesterday. At 10:00 Consumer confidence was reported sharply lower: 59.7 vs 69.6, and New home sales were reported lower: 411K vs 437K. At 10:30 the SPX hit 1562, pulled back to 1556, and then headed back up again. Heading into the close the SPX hit 1564 and closed there.
For the day the SPX/DOW were +0.75%, and the NDX/NAZ were +0.60%. Bonds gained 3 ticks, Crude rallied $1.45, Gold slid $4, and the USD was lower. Medium term support remains at the 1552 and 1523 pivots, with resistance at the 1576 and 1614 pivots. Tomorrow: Pending home sales at 10:00.
The market gapped up at the open today for the third day in a row. One would think since the first gap up started at SPX 1546, and the SPX hit 1565 during the second one, the market would be higher. Nevertheless, these three higher gap openings may suggest there is monies coming from somewhere outside of the US. In the meantime, the SPX continues to struggle to clear the 1560’s. Which happens to be in between the SPX 1553 2000 high, and the SPX 1576 2007 all time high.
The short term wave count, for Minor wave 5 from the SPX 1485 Minor 4 low, suggests the market has been in Minute wave v for more that a week now. Trading has been between SPX 1539 and 1565 and the price action appears forming an ascending wedge. Commonly known as a diagonal triangle. This market does not appear to be in any hurry to clear the hourly posted rising trendline, as it has remained quite choppy since the previous SPX 1564 high.
Short term support is at the 1552 and 1523 pivots, with resistance at the 1576 and 1614 pivots. Short term momentum is getting overbought again. The short term OEW charts turned positive at the open with the reversal level now SPX 1554. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market