SHORT TERM: rebound friday, DOW +168
Overnight the Asian markets lost 0.8%. Europe opened lower but rebounded to lose only 0.1%. US index futures were higher overnight, dropped after monthly Payrolls were reported: +204k v +148K, then turned back up. Also at 8:30 Personal income (+0.5% v +0.4%) / spending (+0.2% v +0.3%) was reported higher, as was PCE prices: +0.1% v +0.2%. The market opened three points above yesterday’s SPX 1747 close and hit 1754 in the first few minutes. Then after a pullback to SPX 1748 by 10AM the market headed higher. Also at 10AM Consumer sentiment was reported lower: 72.0 v 73.2. A 1:30 the SPX hit 1766, pulled back to 1762 by 3:00, then rallied into 1771 close.
For the day the SPX/DOW were +1.20%, and the NDX/NAZ were +1.50%. Bonds lost 34 ticks, Crude slipped 15 cents, Gold dropped $18, 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 a rise in the M1 multiplier: 0.736 v 0.718. Today the WLEI was reported slightly higher: 51.8% v 51.7%.
The market opened higher today, pulled back to nearly retest yesterday’s close, then ramped up for the rest of the day with small pullbacks along the way. It was quite a turnaround after yesterday’s selloff. When the SPX passed 1760 we posted a green Int. iv label at yesterday’s 1746 low. With wave iv ending above wave i it no longer looks like a potential diagonal Major wave 5, and those a-b-c labels will be removed. This certainly is quite a resilient bull market.
Short term support is now at SPX 1746 and SPX 1730, with resistance at the 1779 pivot. Short term momentum rose from extremely oversold to quite overbought. The short term OEW charts swung positive again with the reversal level still SPX 1762. Lots to review this weekend, best to yours !
MEDIUM TERM: uptrend
LONG TERM: bull market