SHORT TERM: new highs, DOW +42
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.5%. US index futures were higher overnight, and at 8:30 Q3 GDP was reported at 4.1% v 3.6%. The market opened one point above yesterday’s SPX 1810 close and began to rally. Within the first few minutes of trading the SPX made a new high. Around 2:30 the SPX hit 1824, then pulled back to close at 1818.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +1.05%. Bonds gained 4 ticks, Crude added 10 cents, Gold rose $11, and the USD was lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Last night the FED reported a record low in the M1-multiplier: 0.697 v 0.709, and today the WLEI was reported lower: 52.1% v 52.8%.
The market opened quietly today, even after the good Q3 GDP final reading, and then started to rally. With nothing more than three point pullbacks along the way the SPX hit a new all time high at 1824. Thus far the rally, Int. iii as we are counting it, has risen 56 points in two days + two hours. During this rise there has only been one notable pullback, which occurred yesterday. The market entered the OEW 1828 pivot range today, and the 1841 pivot would be next.
Short term support is at SPX 1814 and the 1779 pivot, with resistance at the 1828 and 1841 pivots. Short term momentum is about as overbought as it ever gets before backing off towards neutral in the last hour of trading. The short term OEW charts remain positive with the reversal level now SPX 1803. Best to your holiday weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market