SHORT TERM: drift higher continues, DOW -3
Overnight the Asian markets gained 0.3%. Europe opened lower but gained 0.5%. US index futures were higher overnight, and at 8:30 weekly Jobless claims were reported the lowest in 8 years: 284k v 302k. The market opened at SPX 1989, two points above yesterday’s close, then hit 1990 in the first few minutes. After a pullback to SPX 1986 right after New home sales were reported lower: 406k v 504k, the market rallied to 1991 by 11:30. The pullback hit SPX 1986 just after 3pm. Then the market bounced to close at SPX 1988.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.05%. Bonds lost 14 ticks, Crude dropped $1.10, Gold fell $13, and the USD was higher. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: Durable goods orders at 8:30.
The market opened higher again today for the third day in a row. After making a new high at SPX 1991, and setting up a short term negative divergence, the market started to pullback. So far the pullback is a modest 5 points. But if it extends further the market could be in the fourth wave from the Minor 4 low at SPX 1956: 1980-1966-1991-.
Short term support is at SPX 1986 and the 1973 pivot, with resistance at SPX 2000 and the 2019 pivot. Short term momentum declined after a negative divergence. The short term OEW charts ended positive with the reversal level now SPX 1987. Best to your Friday trading!
MEDIUM TERM: uptrend
LONG TERM: bull market