SHORT TERM: gap down then reversal, DOW +21
Overnight the Asian markets gained 0.1%. Europe opened lower but gained 0.1%. US index futures were lower overnight and the market gapped down to SPX 1873 at the open. The SPX had closed at 1878 on Friday. In the opening minutes the SPX dipped to 1872 and then began to rally. The rally continued throughout the day with only three to four point pullbacks along the way. Heading into the close the SPX hit 1886, then dipped to close at 1885.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were +0.80%. Bonds lost 3 ticks, Crude gained 55 cents, Gold added $1, and the USD was lower. Medium term support remains at the 1869 and 1941 pivots, with resistance at the 1901 and 1929 pivots. Nothing on the economic agenda tomorrow.
The market gapped down at the open, then quickly reversed closing the gap before 10am. After that the market rallied to the infamous SPX 1884 area. An area which has been visited consistently since early March. Should the market continue to follow the fractal of the last uptrend, a retest of SPX 1860-ish is next. Should the market follow the count we have posted we should see new highs soon, as sentiment in the NDX/NAZ appears to be improving. Turnaround Tuesday is next.
Short term support is at the 1869 pivot and SPX 1860, with resistance at the 1901 and 1929 pivots. Short term momentum is displaying a very slight negative divergence. The short term OEW charts are still positive, with the reversal level now SPX 1880. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market