SHORT TERM: gap up opening again, DOW +166
Overnight the Asian markets gained 1.2%. European markets opened higher and gained 0.6%. US index futures had a volatile morning after the disappointing Payrolls number was announced: +113k v +74k. Expectations were 150k to 175k. Nevertheless, the market gapped up at the open to SPX 1782, rallied to 1788 in the first few minutes, then began to pullback. At 10:30 the SPX hit 1777, then started moving higher. Heading into the close the SPX hit 1798 and ended the week at 1797.
For the day the SPX/DOW were +1.20%, and the NDX/NAZ were +1.75%. Bonds Gained 10 ticks, Crude rallied $2.15, Gold rose $9, and the USD was lower. Medium term support now rises to the 1779 and 1699 pivots, with resistance at the 1828 and 1840 pivots. Last night the FED reported a decline in the Monetary base: $3.789tn v $3.819tn. Today the WLEI was reported slightly lower: 54.2% v 54.3%.
The market gapped up again at the open today, had its first pullback since Wednesday’s SPX 1738 low, then rallied into the 1790’s hitting our short term target. Quite a rally these past two days: 60 points, with only one 11 point pullback along the way. So far, this does not look like a B wave, it looks too impulsive. Let’s see what arises in our weekly review.
Short term support is now at the 1779 pivot and SPX 1768, with resistance at SPX 1800 and SPX 1814. Short term momentum is extremely overbought. The short term OEW charts remain positive with the reversal level now SPX 1774. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bull market