SHORT TERM: gap up and go, DOW +129
Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.8%. US index futures were higher overnight, and the market gapped up at the open to SPX 1966. It had closed at SPX 1960 yesterday. As the market continued to rise Construction spending was reported higher: +0.2% v +0.1%, Auto sales were reported mixed, and ISM manufacturing was reported lower: 54.3 v 54.4 all around 10am. The market made new all time highs right around 10am, and continued to rally until hitting SPX 1979 at 1:30. Then t pulled back to close at SPX 1973.
For the day the SPX/DOW were +0.70%, and the NDX/NAZ were +1.15%. Bonds lost 11 ticks, Crude added 5 cents, Gold dipped $3, and the USD was higher. Medium term support rises to the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: the ADP at 8:15, Factory orders at 10am, and a speech from FED chair Yellen at 11am.
The market gapped up at the open today. When the SPX hit 1968, around 10am, we upgraded the charts to display the Minor 4 low at SPX 1945. Surprisingly short, (1968-1945), after a 117 point Minor 3. But fourth waves have at times, during this bull market, been short. We are counting Minor 5 underway from that low. We also calculated three overhead resistance areas ahead: 1. the 1973 pivot range (1966-1980), 2. SPX 1989 (M5 = 0.618 M1), and 3. the 2019 pivot range (2012-2026) M5 = M1 and 0.618 M3. Until we get a significant pullback, around 10 points, any one of these three areas could end this uptrend.
Short term support is at is at the 1973 and 1956 pivots, with resistance at SPX 1989 and the 2019 pivot. Short term momentum hit extremely overbought then declined. The short term OEW charts remain positive with the reversal level now SPX 1969. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market