SHORT TERM: gap down opening then new highs, DOW +71
Overnight the Asian markets lost 0.8%. Europe opened lower and lost 0.7%. US index futures were lower, and the market gapped down at the open to SPX 1761. The SPX had closed at 1768 yesterday. Then within a few minutes the “buy the dip” group started a rally. The market rallied into the afternoon with only three point pullbacks along the way. Heading into 2PM the SPX made a new high at 1776. At 2PM the Budget deficit was reported lower: $91.6 bn v $120.0 bn. Then in the last hour of trading the SPX rose above the OEW 1779 pivot level, hitting 1782, and closed there.
For the day the SPX/DOW were +0.65%, and the NDX/NAZ were +1.20%. Bonds gained 14 ticks, Crude rose 75 cents, Gold added $4, and the USD was lower. Medium term support rises to the 1779 and 1699 pivots, with resistance at the 1828 pivot. Tomorrow: weekly Jobless claims and the Trade deficit at 8:30, then FED vice chair Yellen testifies before the Senate in a confirmation hearing. After the close: http://www.federalreserve.gov/newsevents/testimony/yellen20131114a.htm.
The market gapped down at the open for the second day in a row. And just like yesterday it did not manage to gather much selling. In fact, today, unlike yesterday, the market started rallying right after the open. In the last hour of trading the market hit new highs and closed there. It does appear the rally from last Thursday’s SPX 1746 Intermediate wave iv low has progressed: Minor 1 SPX 1773 [monday], Minor SPX 1761 [today’s low], and Minor 3 underway.
Short term support is now at the 1779 pivot and SPX 1746, with resistance at SPX 1810 and SPX 1826-1828. Short term momentum displayed a positive divergence at this morning’s low and ended the day quite overbought. The short term OEW charts dipped early then ended the day positive with the reversal level now SPX 1768. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market