SHORT TERM: gap up opening, DOW +62
Overnight the Asian markets gained 1.2%. Europe opened higher and gained 1.3%. US index futures were higher overnight. At 8:30 the CPI was reported higher: +0.3% v +0.4%, then at 9am the FHFA was reported higher: +0.4% v +0.0%. The market gapped up at the open to SPX 1981 and continued to rally. The SPX had closed at 1974 yesterday. At 10am Existing home sales were reported higher: 5.04mn v 4.89mn. The rally continued until 11am when the SPX made a marginal new high at 1986. It then pulled back to SPX 1981 by 3pm, and bounced to 1984 to end the day.
For the day the SPX/DOW were +0.45, and the NDX/NAZ were +0.70%. Bonds gained 6 ticks, Crude slipped 50 cents, Gold lost $6, and the USD rallied. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Nothing on the economic schedule tomorrow.
The market gapped up at the open, the tenth gap opening in the past 12 trading days. The SPX opened above the recent 1980 high, at 1981, then cleared 1984, but ran into resistance again at 1986. The marginal new high was barely sufficient to update the charts to the alternate count. We are now counting last Thursday’s SPX 1956 low as the end of Minor 4, with Minor wave 5 underway. The activity over the past two weeks, or so, was not enough to break the uptrend. Despite some quite negative news. Should the market clear SPX 1986 the next resistance level is SPX 2000: Minor 5 equals 0.618 Minor 1. After that we have the OEW 2019 pivot.
Short term support is at the 1973 and 1956 pivots, with resistance at SPX 1986 and SPX 2000. Short term momentum neared quite overbought and then backed off some. The short term OEW charts remain positive with the reversal level now SPX 1980. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market