SHORT TERM: gap up and go day, DOW +199
Overnight the Asian markets gained 0.4%. European markets opened higher and gained 0.8%. US index futures were much higher overnight, then moved wildly after the monthly Payrolls report: +203K v +204k, and Unemployment: 7.0% v 7.3%. Also at 8:30 Personal income was reported lower: -0.1% v +0.5%, Personal spending was higher: +0.3% v +0.2%, and the PCE was higher: +0.1% v +0.1%. The market gapped up at the open to SPX 1800 and continued higher. The market had closed at SPX 1785 yesterday. Near 10am Consumer sentiment was reported higher: 82.5 v 75.1 and the SPX hit 1802. Also at 10am the FED: http://www.federalreserve.gov/newsevents/press/other/20131206a.htm. Then after a small pullback to SPX 1797 by 10:30 the market moved higher again. At 2pm the FED: http://www.federalreserve.gov/newsevents/press/bcreg/20131206a.htm. Also the SPX hit 1806 and began to pullback. At 3pm Consumer credit was reported higher: $18.2bn v $13.7bn. The pullback was again small as the SPX touched 1801 by 3:30, then bounced to close at 1805.
For the day the SPX/DOW were +1.20%, and the NDX/NAZ were +0.75%. Bonds were flat, Crude added 30 cents, Gold rose $2, and the USD was flat. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Last night the FED reported a slight rise in the M1-multiplier: 0.709 v 0.707. Today the WLEI was reported higher: 52.9% v 52.7%.
The market gapped up at the open for the first time since November 21st. That was the day after the SPX 1777 low. After a 15 point gap up to SPX 1800, the SPX gained six more points before fading some into the close. Until today the SPX had declined for five straight days, and it nearly made it all back in just one day. Quite a rebound! The market action from last Friday’s SPX 1814 all time high displays: an abc down to the 1779 pivot, and now, possibly, an abc up to 1806. Should the market clear SPX 1814 the uptrend is most likely extending. Will review the charts for the weekend update and see where we are at.
Short term support remains at 1779 pivot and SPX 1746, with resistance at SPX 1810, SPX 1818 and the 1828 pivot. Short term momentum ended overbought today. The short term OEW charts turned positive at the open with the reversal level now SPX 1797. Best to your weekend!
MEDIUM TERM: uptrend rebounds
LONG TERM: bull market