SHORT TERM: new bull market highs, DOW +2
Overnight the Asian markets gained 0.3%. Europe opened lower and closed mixed. US index futures were higher overnight and the market opened higher at SPX 1695. Then after a small pullback to SPX 1691 by 10:00, the market moved even higher. Also at 10:00 Existing home sales were reported lower: 5.08mln vs 5.18mln. At 11:30 the SPX hit 1698, and then began to pullback again. By 1:30 the SPX hit 1693, then went into a narrow trading range into a 1696 close.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.35%. Bonds gained 3 ticks, Crude slid $1.20, Gold rallied $37, and the USD was lower. Medium term support remains at the 1680 and 1628 pivots, with resistance at the 1699 and 1779 pivots. Tomorrow: the FHFA housing index at 9:00.
The market opened above SPX 1693 today, eliminating the second of the three potential short term counts we had posted on Wednesday. Moving us back to just one count: Minor wave 3 underway. This count has been carried on the DOW charts is now also on the SPX charts: Minute i SPX 1627, Minute ii SPX 1615, Minute iii SPX 1693, Minute iv SPX 1684, and Minute v underway.
There are several Fibonacci wave relationships at today’s high, and higher for Minor 3. SPX 1698 Minute v = 0.62 Minute i, SPX 1706 Minute v = Minute i, and at SPX 1713 Minor 3 = 1.618 Minor 1. Short term support is at the 1680 pivot and SPX 1658-1667, with resistance at the 1699 pivot range and SPX 1713. Short term momentum displays a negative divergence at today’s high. The short term OEW charts remain positive with the reversal level SPX 1679. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market