SHORT TERM: new all time highs, DOW +66
Overnight the Asian markets lost 0.5%. Europe opened higher and gained 0.1%. US index futures were higher overnight. At 8:30 Q1 GDP came in less than expected: -1.0% v +0.1%, and weekly Jobless claims were lower: 300k v 326k. The market opened four points above yesterday’s SPX 1910 close, then hit 1916 in the opening minutes. After that it started to pullback. At 10am Pending home sales were reported weaker: +0.4% v +3.4%. The pullback ended at SPX 1910 around 10:30. Then the market started to work its way higher. Heading into the close the SPX hit 1920 and closed there.
For the day the SPX/DOW were +0.45%, and the NDX/NAZ were +0.60%. Bonds lost 6 ticks, Crude gained 80 cents, Gold slipped $3, and the USD was lower. Medium term support remains at the 1901 and 1869 pivots, with resistance at the 1929 and 1956 pivots. Tomorrow: Personal income/spending and PCE prices at 8:30, then at 9:45 the Chicago PMI followed by Consumer sentiment. Also tomorrow, there is a FED conference starting at 9am.
The market opened higher today, made a new high, pulled back, then made another all time high. We noted yesterday, a pullback below SPX 1910, would probably lead to the largest pullback since the 1886-1868 decline. Yesterday’s close and today’s pullback stopped right at SPX 1910. We continue to see three waves up from SPX 1862: 1886-1868-1920. Our initial uptrend target of the OEW 1929 pivot range appears to be next.
Short term support is at the 1901 pivot and SPX 1891, with resistance at the 1929 and 1956 pivots. Short term momentum ended the day quite overbought. The short term OEW charts, which have been positive since SPX 1877, will turn negative with a drop below 1914. Best to your Friday trading!
MEDIUM TERM: uptrend
LONG TERM: bull market