SHORT TERM: another gap up opening, DOW +119
Overnight the Asian markets gained 0.8%. Europe opened higher and gained 0.9%. US index futures were much higher overnight. At 8:30 the NY FED was reported lower: 6.3 vs 8.6. Then at 9:15 Industrial production was reported higher: +0.4% vs 0.0%. The market gapped up at the open to SPX 1701 and continued to rise. The market had closed at SPX 1688 on friday. In the opening minutes the SPX hit 1704, then pulled back to 1699 by 10:00. Another push higher took the SPX to 1705 by 12:30, which was followed by a larger pullback to 1695 by 3:30. The market rallied to close at SPX 1698.
For the day the SPX/DOW were +0.65%, and the NDX/NAZ were -0.20%. Bonds gained 14 ticks, Crude lost $2.05, Gold dropped $14, and the USD was lower. Medium term support remains at the 1680 and 1628 pivots, with resistance at the 1699 and 1762 pivots. Tomorrow: the CPI at 8:30, NAHB housing index at 10:00, and the FED starts their FOMC meeting.
Another gap up opening, the fifth in the last ten trading days, pushed the SPX over the OEW 1699 pivot. Then, for the rest of the day the market trading above and below the pivot. Today the SPX came with 5 points of its all time high, and the market had its first notable pullback in over a week. Quite a rally from SPX 1654 to 1705. Inflection point continues.
Short term support is at the 1680 pivot, and SPX 1658-1667, with resistance at the 1699 pivot and SPX 1710. Short term momentum hit extremely overbought today, then dropped back to neutral. The short term OEW charts remain positive with the reversal level now SPX 1680. Best to your trading!
MEDIUM TERM: inflection point
LONG TERM: bull market