SHORT TERM: higher open = new highs, DOW +63
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.1%. US index futures were higher overnight. At 8:30 Durable goods orders were reported higher: +3.5% v -1.6%, and at 9am FHFA housing prices were reported higher: +0.5% v +0.3%. The market opened two points above yesterday’s SPX 1828 close, dipped to 1829, then gradually moved higher. At 10am New home sales were reported higher: 464k v 444k. By 11:30 the SPX hit 1833 and closed there.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.15%. Bonds lost 12 ticks, Crude added 30 cents, Gold rose $6, and the USD was higher. Medium term support moves up to the 1828 and 1779 pivots, with resistance now at the 1841 and 1869 pivots. Tomorrow is a holiday, and the markets open on Thursday with weekly Jobless claims at 8:30.
The market opened higher today in holiday trading, made a new high and closed there. Not much to add to yesterday’s report. Still three waves up from the FED SPX 1768 low: 1811-1801-1833. The third wave is now approaching the length of the first which is quite normal: 32 pts. v 43 pts. Short term momentum is still creating a negative divergence, but no downside pressure as of yet. The OEW 1841 pivot appears to be next.
Short term support is at the 1828 pivot and SPX 1814, with resistance at the 1841 and 1869 pivots. Short term momentum is creating a negative divergence. The short term OEW charts are still positive with the reversal level now SPX 1815. Happy holiday to you and yours!
MEDIUM TERM: uptrend continues
LONG TERM: bull market