SHORT TERM: uneventful OPEX friday, DOW +85
Overnight the Asian markets gained 1.6%. Europe opened higher and gained 0.3%. US index futures were higher overnight as well. At 8:30 Export (-0.4% v +0.3%)/Import (0.0% v +0.1%) prices were reported lower, and the NY FED was reported lower: -2.2 v +1.5. At 9:15 Industrial production was also reported lower: -0.1% v +0.6%. The market opened two points above yesterday’s SPX 1791 close. Then traded in a narrow two point range until it hit SPX 1795 around 11:30. At 10am Wholesale inventories were reported higher: +0.4% v +0.5%. After a small pullback to SPX 1791 by noon the market moved higher again. Heading into the close the SPX hit 1798 and closed there.
For the day the SPX/DOW were +0.50% and the NDX/NAZ were +0.30. Bonds lost 1 tick, Crude slipped 5 cents, Gold was flat, and the USD was lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 pivot. Last night the FED reported the Monetary base increased: $3.682tn v $3.628tn. Today the WLEI rose to 52.2% v 51.8%.
The market opened higher today, dipped back to yesterday’s close, and then proceeded to new all time highs. This has been one relentless bull market lately. The short term count remains the same: Minor 3 of Int. wave v of Major 5 underway. Lots to review this weekend.
Short term support is at the 1779 pivot and SPX 1746, with resistance at SPX 1810 and the 1828 pivot. Short term momentum is displaying a slight negative divergence at today’s close, and quite overbought. The short term OEW charts remain positive with reversal level now SPX 1781. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market