SHORT TERM: gap up opening, DOW +28
Overnight the Asian markets gained 1.1%. Europe opened higher and gained 0.8%. US index futures were higher overnight, and the market gapped up to SPX 1738 at the opening. The SPX had closed at 1733 yesterday. The market continued to rise until it hit SPX 1740 by 10AM. Then after a small pullback to SPX 1736 by 10:30, the market continued its rise to all time new highs. Around 2:30 the SPX hit 1745, dipped in the closing hour, and then ended the week at 1745.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +1.45%. Bonds lost 3 ticks, Crude added 25 cents, Gold slipped $4, and the USD was flat. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Last night the FED reported an increase in the Monetary base: $3.625tn v $3.528tn, and an increase in the M1-multiplier: 0.733 v 0.721. Today the WLEI was reported at its lowest level in about one year: 52.8% v 53.8%.
The SPX opened today at all time new highs, pulled back, then went even higher. Meanwhile the lagging DOW is still about 300 points from its all time high. But the DOW does appear to be impulsing, despite earnings misses from some its heavily weighed stocks. After days of deliberation regarding this trifurcation market, we are going to shift probabilities with the three counts posted last weekend. Details in the weekend update.
Short term support is at SPX 1730 and the 1699 pivot, with resistance at the 1779 pivot. Short term momentum stayed overbought all day, and ended the day quite overbought. The short term OEW charts remain positive with the reversal level now SPX 1720. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market