SHORT TERM: gap up and go, DOW +112
Overnight the Asian markets gained 1.3%. Europe opened higher and gained 0.8%. US index futures were higher overnight, and the market gapped up at the open to SPX 1888. The SPX had closed at 1878 on Friday. The rally continued throughout the morning, led by the NDX/NAZ, into the afternoon. At 2pm the government reported another Budget surplus: +$106.9bn v +$112.9bn. Heading into the close the SPX hit its all time high at 1897 and closed there.
For the day the SPX/DOW were +0.80%, and the NDX/NAZ were +1.70%. Bonds lost 9 ticks, Crude added 70 cents, Gold rallied $8, and the USD was higher. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: Retail sales and Export/Import prices at 8:30, then Business inventories at 10am.
The market gapped up at the open to start the week. Then continued to rally, with only two-three point pullbacks along the way. Before 10:30 the SPX cleared short term resistance at 1889/1891, and then entered the OEW 1901 pivot range for the first time since early April. Around 3pm the SPX matched its all time high at 1897. This morning we marked the recent SPX 1860 low as Minute wave ii, when the SPX cleared 1891. With today’s, and late-Friday’s, strength in the NDX/NAZ, this rally could be the third wave, (Minute iii), we have been waiting for.
Short term support is now at SPX 1891/1889 and the 1861 pivot, with resistance at the 1901 and 1929 pivots. Short term momentum ended quite overbought. The short term OEW charts remain positive with the reversal level now SPX 1888. Best to your trading!
MEDIUM TERM: uptrending
LONG TERM: bull market