SHORT TERM: market drifts higher, DOW +8
Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.1%. US index futures were lower overnight, and the market opened two points below Friday’s SPX 1797 close. During the first few minutes the market dipped to SPX 1793, bounced to 1798, and then began to pullback further. At 11am the SPX hit 1792, for a small pullback, and then started working its way higher. At 2:30 the SPX hit 1800, pulled back a bit, then closed at 1800 for the day.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.55%. Bonds lost 1 tick, Crude added 5 cents, Gold rose $7, and the USD was lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1840 pivots. Tomorrow: Wholesale inventories at 10am, and Janet Yellen makes her first public appearance as FED chair, testifying before Congress with the semi-annual monetary policy report.
The market opened slightly lower to start the week. Then after bouncing to Friday’s SPX 1798 high the market pulled back to 1792. After that it made a new rally high at short term resistance of SPX 1800, and closed there. This was somewhat of a consolidation day ending with a slightly higher high. Parameters remain: over SPX 1814 uptrend probably underway, below 1779 pivot range downtrend resumes.
Short term support is at the 1779 pivot and SPX 1768, with resistance at SPX 1800 and SPX 1814. Short term momentum backed off some, after the Friday’s extreme overbought condition, and now appears to be setting up a negative divergence. The short term OEW charts remains positive with the reversal level now SPX 1782. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market