SHORT TERM: gap up opening then consolidation, DOW +24
Overnight the Asian markets were mixed. Europe opened higher and gained 0.4%. US index futures were higher overnight and the market gapped up to SPX 1767 at the open. The SPX had closed at 1762 on Friday. In the opening minutes the SPX hit 1768 and then began to pullback. At 10AM Factory orders were reported lower for August, but higher for September: +1.7% v -0.1%. The pullback lasted until 11:00 when the SPX retested Friday’s close. Then it began to works its way higher. Heading into the close the SPX hit 1769, then closed at 1768.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were +0.25%. Bonds gained 6 ticks, Crude dipped 15 cents, Gold slipped $2, and the USD was lower. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: ISM services at 10AM.
The market gapped up at the open today, pulled back, then made the high for the day, SPX 1769, just before the close. Clearly the positive divergence at Friday’s SPX 1753 low has worked well. As the market has now had its best rally since the SPX 1775-1753 decline began. With the market only six points from its all time high, and no technical confirmation that Int. wave iv concluded at SPX 1753, the next couple of days should be quite interesting. Should the market break through short term resistance at SPX 1766-1769 it could be on its way to new highs. If not, Minor wave b would have concluded and the next move should be below SPX 1753.
Short term support is at SPX 1753 and SPX 1730, with resistance at SPX 1769 and the OEW 1779 pivot. Short term momentum ended the day overbought. The short term OEW charts remain positive with the reversal level now SPX 1763. Best to your trading at an other interesting juncture.
MEDIUM TERM: uptrend
LONG TERM: bull market