SHORT TERM: gap up opening, DOW +75
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.6%. US index futures were lower overnight, and at 8:30 monthly Payrolls were reported lower: 148k v 169k. The market gapped up at the open to SPX 1750, a new high, and continued to rally. The SPX had closed at 1745 yesterday. At 10AM Construction spending was reported higher: +0.6% v +0.6%. The rally continued until 10:30 when the SPX hit 1759. Then there was the first meaningful pullback in a week to SPX 1748 by 11AM. After that the market worked its way higher into the afternoon. Just past 3PM the SPX hit 1758 then pulled back to close at 1755.
For the day the SPX/DOW were +0.50%, and the NDX/NAZ were +0.20%. Bonds gained 23 ticks, Crude lost $.140, Gold rallied $24, and the USD was lower. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: Export/Import prices at 8:30 and the FHFA index at 9AM.
The market gapped up at the open today for the third time in the past five trading days. After setting a new all time high at SPX 1759, the market had its first decent pullback since SPX 1696 a week ago. While today’s high could have marked Minor 3 of this Int. iii rally, and the low possibly Minor 4 as well. We would have liked to have seen the market pull back a bit further, i.e. low 1740’s. This is still possible before it makes new highs.
Short term support is at SPX 1730 and the 1699 pivot, with resistance at the 1779 pivot. Short term momentum displayed a negative divergence again at today’s highs, but momentum still ended the day overbought. The short term OEW charts remain positive with the reversal level now SPX 1737. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market