SHORT TERM: SPX makes new high, DOW +61
Overnight the Asian markets lost 1.2%. Europe opened lower but finished mixed. US index futures were higher overnight, and at 8:30 Durable goods orders were reported higher: +3.7% v +0.1%. The market opened four points above yesterday’s SPX 1752 close, and then rose to 1758 by 10AM. At 10AM Consumer sentiment was reported lower: 73.2 v 75.2, and Wholesale inventories were reported higher: +0.5% v +0.1%. The market then pulled back to SPX 1752 by 12:30. For the rest of the afternoon the market drifted higher and heading into the close the SPX hit 1760, and closed there.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.50%. Bonds gained 6 ticks, Crude rose 85 cents, Gold added $6, and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Last night the FED reported the M1-multiplier hit a new multi-decade low: 0.718 v 0.733. Today the WLEI was also reported lower: 52.0% v 52.8%.
The market opened higher today, came within one point of the SPX 1759 all time high, went into consolidation mode, and then made a new high just before the close. This rally from Wednesday’s SPX 1741 low is Minor 5 of Int. iii/c. It even looks like a fifth wave, as it is drifting higher rather then spiking higher, as we have seen in Minor waves 1 and 3. The FOMC meeting next week could put in the high for this advance from SPX 1646.
Short term support is now at SPX 1759 and 1730, with resistance at the 1779 pivot. Short term momentum remained near overbought for most of the day. The short term OEW charts remain positive with the reversal level now SPX 1748. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market