SHORT TERM: gap up opening sold again, DOW -8
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.6%. US index futures were much higher overnight until the disappointing jobs report: 74k v 203k. However, unemployment is nearing the FED’s 6.5% goal: 6.7% v 7.0%. The market gapped up at the open to SPX 1843 then almost immediately started to pullback. The SPX closed at 1838 yesterday. By 10am the SPX had dropped to 1834, when the FED released this: http://www.federalreserve.gov/newsevents/press/other/20140110a.htm. Also at 10am Wholesale inventories were reported higher: +0.5% v +1.4%. A bounce to SPX 1838 followed by 10:30, then a lower low to 1832 by 11:30. Then the market started to rally. At 12:30 http://www.federalreserve.gov/newsevents/press/bcreg/20140109a.htm the FED released this. then at 3pm the FED released this: http://www.federalreserve.gov/newsevents/press/other/20140110b.htm. The rally carried to SPX back to 1843 by 3:30. Then a dip to SPX 1842 ended the week.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.40%. Bonds gained 30 ticks, Crude rose $1.05, Gold rallied $18, and the USD was lower. Medium term support shifts to the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Last night the FED reported a decrease in the Monetary base: $3.666tn v $3.670tn. Today the WLEI was reported higher: 52.5% v 51.8%.
The market gapped up at the open for the fourth day this week. Quite a rare occurrence. But immediately pulled back, just like it had done twice previously this week. Choppy market! After the open the SPX hit Thursday’s 1843 high, dropped to 1832, then hit 1843 again heading into the close. The short term count from the SPX 1849 high now displays a simple three wave Minute a decline: 1828-1838-1824, then a Minute b double three rally: 1840-1831-1843-1830-1843-1832-1843. We would assume when this last leg up concludes Minute c down should be underway next.
Short term support is at the 1841 and 1828 pivots, with resistance at SPX 1849 and the 1869 pivot. Short term momentum stayed around neutral most of the day before touching overbought near the close. The short term OEW charts ended positive with the reversal level now SPX 1836. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market