SHORT TERM: gap up opening, DOW +112
Overnight the Asian markets gained 0.4%. Europe opened higher and rebounded 0.9%. US index futures were higher overnight, and the market gapped up at the open to SPX 1977. The market had ended last week at SPX 1968. In the opening minutes the market dipped to SPX 1976, then moved to 1980 by 11am. After that the market sort of drifted lower for the rest of the day closing at 1977.
For the day the SPX/DOW were +0.55%, and the NDX/NAZ were +0.60%. Bonds lost 7 ticks, Crude added 20 cents, Gold dropped $30, and the USD was lower. Medium term support rises to the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: Retail sales (est. +0.7%), the NY FED and Export/Import prices at 8:30, then Business inventories at 10am. Also at 10am: FED chair Yellen testifies before the Senate on the semi-annual report of monetary policy, plus FED counsel Alvarez testifies before the House.
The market gapped up to start the week, and today’s rally to SPX 1980 pushed our Minor B wave scenario to the limit of the OEW 1973 pivot range. During the rally, however, the DOW, NDX and TRAN all made new bull market highs. This suggests the possibility that the uptrend is not done yet. As a result we posted an alternate count on the NAZ daily chart, suggesting Minor 4 ended recently, (at the SPX 1953 equivalent), and we are now in Minor 5. Should the SPX make new highs this would be the accepted count.
Short term support is now at the 1973 and 1956 pivots, with resistance at SPX 1986 and the 2019 pivot. Short term momentum hit extremely overbought at the high. The short term OEW charts remain positive with the reversal level now SPX 1974. Best to your trading Tuesday’s eventful activity.
MEDIUM TERM: uptrend/downtrend at cross roads
LONG TERM: bull market