SHORT TERM: gap up and go, DOW +176
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 1.3%. US index futures were higher overnight, and the market gapped up at the open to SPX 1965. The market had closed at SPX 1955 on friday. At 10am the NAHB was reported higher: 55 v 53. The rally continued higher to SPX 1972 by 12:30. A small pullback followed to SPX 1969 by 3:30, then back to the highs to end the day.
For the day the SPX/DOW were +0.95%, and the NDX/NAZ were +0.90%. Bonds lost 10 ticks, Crude dropped $1.45, Gold slipped $5, and the USD was higher. Medium term support rises to the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Tomorrow: the CPI, Housing starts and Building permits all at 8:30.
The market gapped up at the open, rallied to within one point of the OEW 1973 pivot, was quite overbought, and then began to pullback. The rally off friday’s SPX 1942 low has already traversed 30 points in just one day of trading. When the SPX passed 1964 this AM we marked that low Minute wave ii. Minute iii of Minor 3 should be underway. Normal pullbacks at this juncture should be limited to about 10 points. With the NAZ and NDX both in confirmed uptrends it appears it’s just a matter of time before the SPX and DOW confirm as well.
Short term support is at SPX 1964 and the 1956 pivot, with resistance at the 1973 pivot and SPX 1991. Short term momentum hit quite overbought at today’s high. The short term OEW charts remains positive with the reversal level now SPX 1964. Best to your trading!
MEDIUM TERM: uptrend highly probable
LONG TERM: bul l market