SHORT TERM: market drifts higher, DOW +75
Overnight the Asian markets lost 0.1%. European markets opened lower but gained 0.1%. US index futures were higher overnight. At 8:30 Retail sales were reported higher: +0.2% vs +0.2%, and the PPI was reported higher: +0.3% vs 0.0%. The market opened higher at SPX 1687, ticked up to 1688, and then began to pullback. At 10:00 Consumer sentiment was reported lower: 76.8 vs 82.1, but Business inventories were reported higher: +0.4% vs 0.0%. By 10:30 the SPX hit yesterday’s low at 1682, and then tried to rally. Around 2:00 the SPX hit 1689, dipped to 1686 just before the close, and ended the week at 1688.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.15%. Bonds gained 6 ticks, Crude slipped 10 cents, Gold added $2, and the USD was lower. Medium term support remains at the 1680 and 1628 pivots, with resistance at the 1699 and 1762 pivots. Last night the FED reported the M1 multiplier ticked up: 0.742 vs 0.741. Today the WLEI was reported higher: 54.1% vs 53.9%.
The market opened higher today, then traded within yesterday’s SPX 1682-1690 range for the rest of the day. Not much of a change from yesterday after this eventful week. The SPX/DOW have been acting a bit more impulsive since last Friday’s SPX 1654 low. But since the rally from SPX 1627 started in such a choppy fashion. One can not be certain if this is a counter-trend rally, or a new uptrend. With both the SPX/DOW less than 2% from their highs we should find out soon.
Short term support remains at the 1680 pivot, and SPX 1658-1667, with resistance at the 1699 pivot and SPX 1710. Short term momentum continues to display a negative divergence. The short term OEW charts remain positive with the reversal level now SPX 1674. Best to your weekend!
MEDIUM TERM: downtrend inflection point
LONG TERM: bull market