SHORT TERM: gap up opening, DOW +73
Overnight the Asian markets opened gained 0.3%. Europe opened higher and gained 0.8%. US index futures were much higher overnight, and at 8:30 Personal income (+0.2% v -0.1%)/spending (+0.5% v +0.3%) and PCE prices (+0.1% v +0.1%) were all reported higher. The market gapped up at the open to SPX 1828, ticked up to 1829 in the opening minutes, then pulled back to 1825 by 10am. The SPX had closed at 1818 on Friday. At 10am Consumer sentiment was reported unchanged: 82.5 v 82.5. The market then rallied to SPX 1830 by 12:30 before pulling back at 1825 again by 2pm. Then after a small bounce to 1829 by 3:30 the market dipped to close right at the 1828 pivot.
For the day the SPX/DOW were +0.50%, and the NDX/NAZ were +1.10%. Bonds lost 10 ticks, Crude slid 50 cents, Gold slipped $3, and the USD was lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow: Durable good orders at 8:30, FHFA home prices at 9am, New home sales at 10am, and the market closes at 1pm. Happy holidays!
The market gapped up at the open today, hit SPX 1830 a new high, then consolidated for the rest of the day. The rally from Wednesday’s SPX 1768 low still looks like three waves into new high territory SPX: 1811-1801-1830. Would expect this advance to unfold in five waves before any substantial pullback. At this point a pullback of 10 or so points can occur at any time.
Short term support is at SPX 1814 and the 1779 pivot, with resistance at the 1828 and 1841 pivots. Short term momentum is starting to form a negative divergence. The short term OEW charts remain positive with the reversal level now SPX 1811. Best to your holidays!
MEDIUM TERM: uptrend hits new high
LONG TERM: bull market