SHORT TERM: gap up open = new highs again, DOW +122
Overnight the Asian markets that were opened finished mixed. None of the major European markets were open. US index futures were higher overnight, and at 8:30 weekly Jobless claims were reported lower: 338k v 379k. The market gapped up at the open to SPX 1838 and continued to rally. The SPX had closed at 1833 on Tuesday. The rally continued throughout the day as the market worked its way higher with only two point pullbacks along the way. Nearing the close the SPX hit 1843 and closed at 1842.
For the day the SPX/DOW were +0.60%, and the NDX/NAZ were +0.30%. Bonds lost 3 ticks, Crude added 40 cents, Gold rose $6, and the USD was flat. Medium term support now rises to the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Tomorrow the economic agenda is clear.
The market gapped up at the open today for the second time this week. Monday’s gap up took the market to new highs, and today’s did the same. The current advance from the recent FED SPX 1768 low is still three waves. But the third wave is now nearly equal to the first: 1811-1801-1843. The negative divergence that was forming on Tuesday was cleared today as short term momentum reached extreme levels. A pullback, of some degree, can now occur at any time.
Short term support is now at the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Short term momentum hit extremely overbought, and finished there. The short term OEW charts remain positive with the reversal level now SPX 1824. Best to your Friday trading!
MEDIUM TERM: uptrend new highs
LONG TERM: bull market