SHORT TERM: gap up and new highs, DOW +92
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 1.0%. US index futures were higher overnight. At 8:30 monthly Payrolls were reported higher: 288k v 217k, the Unemployment rate was lowered: 6.1% v 6.3%, the Trade deficit decreased: -$44.4 v -$47.2, and weekly Jobless clams were higher: 315k v 312k. The market gapped up at the open to SPX 1980 and continued to rally. The SPX had closed at 1975 yesterday. At 10am ISM services were reported lower: 56.0 v 56.3. The rally continued into the afternoon, with only two point pullbacks, to SPX 1986. A dip at the close ended the holiday shortened week at SPX 1985.
For the day the SPX/DOW were +0.55%, and the NDX/NAZ were +0.60%. Bonds lost 4 ticks, Crude slid 45 cents, Gold dropped $7, and the USD was higher. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow is the Independence day holiday.
The market gapped up at the open, making new highs in the process, and continued to SPX 1986 just before the close. With today’s rally Minor wave 5 has now advanced 41 points without a meaningful pullback. All pullbacks, from the Minor 4 low at SPX 1945, have been limited to 6 points. The next overhead resistance is at SPX 1989, where Minor 5 equals 0.618 times Minor 1. Relentless bull market. Have a happy 4th of July!
Short term support is at the 1973 and 1956 pivots, with resistance at SPX 1989 and the 2019 pivot. Short term momentum ended the week extremely overbought. The short term OEW charts remain positive from SPX 1960, and the reversal level is now 1977. Best to your three day weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market