SHORT TERM: gap up then pullback, DOW +31
Overnight the Asian markets gained 0.9%. European markets opened lower and lost 1.4%. US index futures were higher overnight and rose quite a bit after monthly Payrolls were reported at 8:30: +175k v +113k. The Trade deficit was reported slightly larger: -$39.1bn v -$38.7bn. The market gapped up at the open to SPX 1884 and then immediately started to pullback. By 10am it hit SPX 1875, bounced to 1882 just past 10am, then dropped to 1871 by 11:30. A rally attempt took the SPX to 1878 by 12:30, then another pullback followed to 1872 by 2pm. At 3pm Consumer credit was reported lower: $13.7bn v $18.8bn. The market then rallied into to close ending the week at SPX 1878.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were -0.40%. Bonds lost 15 ticks, Crude gained $1.00, Gold dropped $11, and the USD was higher. Last night the FED reported an increase in the Monetary base: $3.898tn v $3.883tn. Today the WLEI was reported higher: 51.8% v 51.7%, and our MIS was reported higher: 56.9% v 55.6%. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1962 pivots.
The market gapped up at the open on the better than expected Payrolls report. But the SPX 1884 open was immediately sold off to 1871 by 11:30. After that the market tried to work its way higher for the rest of the day. Around 10am we updated the SPX hourly chart to display a Minute wave one high at SPX 1884, and Minute wave two underway. We ended the week awaiting a rally to SPX 1880 to help confirm Minute two ended today.
Short term support remains at the 1869 pivot and SPX 1859, with resistance at the 1901 and 1962 pivots. Short term momentum declined below neutral during the pullback. The short term OEW charts remain positive with the reversal level now SPX 1871. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market