SHORT TERM: another day another new high, DOW +111
Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.5% as well. US index futures were higher overnight, and at 8:30 both Retail sales (-0.1% v +0.2%) and the PPI (-0.1% v +0.3%) were reported lower. At 9AM Case-Shiller was reported higher: +12.8% v +12.0%. The market gapped up at the open to SPX 1767 and hit 1769 in the first few minutes. The SPX had closed at 1762 yesterday. At 10AM Business inventories were reported higher: +0.3% v +0.4%, but Consumer confidence dropped: 71.2 v 79.7. The market hit SPX 1764 about that time and started to rally. Around 1PM the SPX hit 1771, pulled back to 1768 by 3PM, then closed at 1772.
For the day the SPX/DOW were +0.70%, and the NDX/NAZ were +0.30%. Bonds gained 5 ticks, Crude slipped 45 cents, Gold slid $8, and the USD was higher. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: ADP at 8:15, Q3 GDP and the CPI at 8:30, then the FOMC statement around 2PM.
The market gapped up at the open today, hit SPX 1769, pulled back, hit 1771, pulled back, then entered the OEW 1779 pivot range by closing at 1772. Our long term bull market target has been reached. My job is done. You are on your own. Just joking! FOMC day is tomorrow. They are usually accompanied by lots of volatility after the FOMC statement is released. Recently they have generated a rally, and then a pullback/correction. Always an interesting day.
Short term support is at SPX 1759 and SPX 1730, with resistance at the 1779 pivot and SPX 1804. Short term momentum ended the day quite overbought. The short term OEW charts remain positive with the reversal level now SPX 1758. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market