SHORT TERM: gap up opening, DOW +129
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.3%. US index futures were higher overnight and the market gapped up at the open to SPX 1768. The market had closed at SPX 1763 yesterday. At 10AM Leading indicators were reported higher: +0.7% v +0.7%, and the SPX hit 1774. The market then pulled back to 1764 by 11AM, nearly closing the gap, and tried to rally again. At 3:30 the SPX hit 1771 and dipped to close at 1770.
For the day the SPX/DOW were +0.60%, and the NDX/NAZ were -0.15%. Bonds gained 11 ticks, Crude rose $1.45, Gold added $7, and the USD was lower. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 pivot. Tomorrow: the ECB meets, Q3 GDP and weekly Jobless claims at 8:30, TWTRs IPO, and a speech from FED governor Stein at 2PM.
The market had another gap opening today, the third one this week. Within the first half hour the SPX came within one point of marching its all time high, but the DOW made a new high. With the new high in the DOW we updated the count to display an ongoing Major wave 5, with Int. wave v currently underway. The SPX count stayed the same. Trifurcation continues.
Short term support remains at SPX 1756 and SPX 1730, with resistance at the 1779 pivot. Short term momentum is displaying a negative divergence at today’s highs. The short term OEW charts move from neutral to positive with the reversal level now at SPX 1764. Good luck trading tomorrow’s plethora of market data!
MEDIUM TERM: uptrend
LONG TERM: bull market