SHORT TERM: another quiet trading day, DOW +25
Overnight the Asian markets were mixed. Europe opened higher and gained 0.4%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported lower: 316k v 323k, but Durable goods orders were reported lower: -2.0% v +3.8%. The market opened two points above yesterday’s SPX 1803 close, then continued higher until it hit 1808 by 10am. At 9:45 the Chicago PMI was reported lower: 63.0 v 65.9, but Consumer sentiment was reported higher near 10am: 75.1 v 72.0. The market then traded in a two point range until 11am and started to pullback. Around 1:30 the SPX hit 1803. Then the market drifted back to SPX 1808 just before an 1807 close.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.70%. Bonds lost 11 ticks, Crude dropped $1.30, Gold slipped $3, and the USD was higher. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow is the Thanksgiving holiday in the US.
The market opened higher today, hit the SPX 1808 high for the third day in a row, then backed off. The three trading days this week surprisingly display similar ranges: Mon: 1801-1808, Tues: 1801-1808, Wed: 1803-1808. Normally this would suggest a top or a 4th wave triangle is forming. The market has not traded in such a narrow range for quite some time. Also of note, there has not been a notable price reversal since last Wednesday. This is quite unusual for this, or any, market sitting at all time highs. Is tax selling and new buying keeping the balance.
Short term support is at the 1779 pivot and SPX 1746, with resistance at SPX 1804-1810, SPX 1818 and the 1828 pivot. Short term momentum continues to display a negative divergence. The short term OEW charts remain positive with the reversal level now SPX 1802. Happy Thanksgiving to one and all!
MEDIUM TERM: uptrend
LONG TERM: bull market