SHORT TERM: rally continues, DOW +65
Overnight the Asian markets lost 0.3%. Europe opened higher and gained 1.4%. US index futures were flat to higher overnight, and at 9am the FHFA index was reported higher: +0.6% v +0.5%. The market opened three points above yesterday’s SPX 1872 close and continued to move higher. At 10am Existing home sales were reported lower: 4.59m v 4.60m. The opening rally continued throughout the day as the SPX rose with only two point pullbacks. By 2pm the market had hit SPX 1885, then it began to pullback. Heading into the close the SPX hit 1880 and closed there.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.90%. Bonds lost 2 ticks, Crude dropped $2.00, Gold slid $5, and the USD was lower. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: New home sales at 10am.
The market opened higher today, rallied to SPX 1885 with only 2 point pullbacks, then pulled back into the close. This has been one of the strongest rallies we have seen in a long time: a seventy-one point advance without a notable pullback. Both the SPX and DOW are getting close to confirming new uptrends. With the NDX/NAZ still about 4% below their bull market highs. This would suggest the SPX/DOW are likely tracking the count posted on the DOW charts, and not the diagonal on the SPX charts.
Short term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum blew right through yesterday’s negative divergence, hit extremely overbought today, then declined. The short term OEW carts remain positive with the reversal level now SPX 1865. Best to your trading!
MEDIUM TERM: uptrend probable
LONG TERM: bull market