SHORT TERM: higher open then narrow range, DOW +5
Overnight the Asian markets gained 1.4%. Europe opened higher and gained 0.2%. US index futures were higher overnight, and the market opened three points above Friday’s SPX 1805 close. By 10am the SPX hit 1812, its highest level since it posted an 1814 all time high on November 29th. A pullback followed to SPX 1807 by 10:30, then the market tried to rally again. After a bounce to SPX 1811 by 1:30 the market started to pullback again. Just before the close the SPX hit 1807 again, then bounced to close at 1808.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.25%. Bonds gained 6 ticks, Crude slipped 30 cents, Gold rallied $12, and the USD was lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow: Wholesale inventories at 10am.
The market opened higher today, traded within two points of the all time high, then went into a narrow 5 point trading range for the rest of the day. At today’s high the market was quite overbought short term, so a pullback should have been expected. Thus far we see only three waves up from the recent SPX 1779 low: 1796-1783-1812. Should the market make new highs we will be forced to remove the “abA” pattern posted on the hourly chart. If not, we would consider today’s high wave B of an ongoing larger pullback.
Short term support is the 1779 pivot and SPX 1746, with resistance at SPX 1810, SPX 1818 and the 1828 pivot. Short term momentum hit quite overbought then dropped near neutral. The short term OEW charts remain positive with the reversal level now SPX 1801. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market