SHORT TERM: gap up opening, DOW +91
Overnight the Asian markets gained 0.5%. Europe opened higher and gained 1.0%. US index futures were higher overnight, but at 8:30 Retail sales were reported flat: 0.0% v +0.2%. The market gapped up anyway to SPX 1943 then started to pullback. The SPX had closed at 1934 yesterday. At 10am Business inventories were reported higher: +0.4% v +0.5%. The pullback hit SPX 1938 by 10:30 and then the market moved higher. At 11:30, just when Europe was closing, the SPX hit 1948. Then it started drifting lower. At 2:30 the SPX hit 1944, then bounced to 1947 by the close.
For the day the SPX/DOW were +0.60%, and the NDX/NAZ were +1.10%. Bonds gained 10 ticks, Crude gained 5 cents, Gold added $3, and the USD was higher. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: weekly Jobless claims and Export/Import prices at 8:30.
The market gapped up at the open for the second time this week. The rally cleared the SPX 1940 level at the open, and we placed a Minor wave 2 label at yesterday’s SPX 1928 low. Minor wave 3 appears to be underway from that level. Today’s SPX 1948 high came within one point of the OEW 1956 pivot range. Which we feel is the market’s next objective. In fact, SPX 1953-1956 looks to be a good range. Thus far, Minor 3 has rallied 20 points without any meaningful pullback. We would expect one when the SPX hits the 1956 pivot range, if not before. Keep an eye on Germany overnight and in the first couple of hours of trading.
Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum hit quite overbought today and then dipped some. The short term OEW charts remain positive with the reversal level now SPX 1941. Best to your trading!
MEDIUM TERM: uptrend probable
LONG TERM: bull market