SHORT TERM: gap up and go rally, DOW +188
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 1.6%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported lower: 331k v 348k, but the Trade deficit was reported larger: -$38.7bn v -$34.3bn. Also before the open FED governor Tarullo’s senate testimony was released: http://www.federalreserve.gov/newsevents/testimony/tarullo20140206a.htm. The market gapped up to SPX 1757 at the open. The SPX had closed at 1752 yesterday. In the first few minutes the market cleared SPX 1759, and continued higher. At 11am the SPX hit 1771. Then went sideways for a couple of hours hitting SPX 1766 by 1:30. After that it tried to move higher again. Heading into the close the SPX hit 1774 and closed at 1773.
For the day the SPX/DOW were +1.20%, and the NDX/NAZ were +1.20%. Bonds lost 9 ticks, Crude added 40 cents, Gold slipped $1, and the USD was lower. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1779 and 1828 pivots. Tomorrow: monthly Payrolls at 8:30 (est. +150k to +170k), and Unemployment rate (est. 6.5% to 6.7%), then Consumer credit at 3pm.
The market gapped up at the opening and just kept on rising with just one five point pullback around midday. Nice rally. The market has just had its best rally since the decline began from SPX 1851. The previous best was the 28 points for Minor b in Int. A. With short term momentum now quite overbought, we would expect a pullback soon. Then another rally into the Int. wave B high. Still targeting the SPX 1790’s, with the target 1794.
Short term support is now at SPX 1768 and SPX 1746, with resistance at the 1779 pivot and SPX 1800. Short term momentum ended the day quite overbought. The short term OEW charts turned positive today, with the reversal level now SPX 1766. Best to your NFP trading!
MEDIUM TERM: downtrend
LONG TERM: bull market