SHORT TERM: rebound continues, DOW +6
Overnight the Asian markets lost 0.4%. Europe opened higher and gained 0.1%. US index futures were lower overnight, and the market opened three points below yesterday’s SPX 1957 close. At 10am Consumer sentiment was reported higher: 82.5 v 81.3. The market hit SPX 1953 just past 10am, bounced to yesterday’s high at 1958 by 11am, then dipped to 1952 by 1:30. After that the market rallied into the close, and ended the week at SPX 1961.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.45%. Bonds gained 1 tick, Crude slipped 10 cents, Gold slipped $1, and the USD was lower. Medium term support remains at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Last night the FED reported a decrease in the Monetary base: $3.963tn v $4.007tn. Today the WLEI was reported lower again: 54.3 v 54.5.
The market opened lower today, rallied to yesterday’s SPX 1958 high, made a slightly lower low, then rallied to Wednesday’s SPX 1961 high. With the SPX reaching 1961 it appears yesterday’s second option, Minute B underway, was correct. Since the entire pullback from the recent SPX 1968 high was only 23 points to 1945, after a 117 point Minor wave 3. It would appear quite odd that SPX 1945 would have ended Minor 4. So we now have a Minute wave A (1947-1961-1945), followed by a Minute B to 1961, expecting Minute wave C next.
Short term support is at the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Short term momentum ended the week overbought. The short term OEW charts flip-flopped again today, ending positive, with the reversal level SPX 1956. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market