SHORT TERM: gap up and new high, DOW +69
Over the holiday Asian markets rose 0.4%, and European markets rose 0.8%. Overnight the Asian markets lost 0.3%. Europe opened higher and gained 0.3%. US index futures were higher over the holiday, and remain higher overnight as well. At 8:30 Durable goods orders were reported higher: +0.8% v +2.6%, at 9am Case-Shiller was reported lower: +12.4% v +12.9%, but FHFA housing prices were reported higher: +0.7% v +0.6%. The market gapped up at the open to SPX 1908, a new all time high, and continued to rise. The market had closed at SPX 1901 last week. At 10am Consumer confidence was reported higher: 83.0 v 82.3. At 11am the SPX hit 1912, dipped to 1908 by 12:30, and then went into a two point trading range until the last hour of trading. Just past 3:30 the SPX hit 1912 again and closed there.
For the day the SPX/DOW were +0.50%, and the NDX/NAZ were +1.20%. Bonds gained 4 ticks, Crude slipped 20 cents, Gold dropped $26, and the USD was lower. Medium term support now rises to the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Tomorrow: no economic reports scheduled.
The market gapped up at the open after a three day weekend, and made new all time highs. Thus far we have three waves up from SPX 1862: 1886-1868-1912. With short term momentum hitting an extremely overbought level this morning, and a rising trend line from late April: 1885-1902-1912, we may be due for a pullback. To continue this rally in an impulsive fashion any pullback needs to hold above SPX 1886, and then make higher highs. With the NDX less than 1% below its bull market high, and the NAZ more than 3%, this is likely to occur.
Short term support is now the OEW 1901 pivot and SPX 1891, with resistance at the 1929 and 1956 pivots. Short term momentum hit extremely overbought, with a potential negative divergence at the close. The short term OEW charts remain positive from SPX 1877 with the reversal level now 1905. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market