SHORT TERM: new all time highs, DOW +60
Overnight Asian markets gained 0.1%. Europe opened higher and gained 0.8%. US index futures were higher overnight, and at 8:30 weekly Jobless claims were reported lower: 298k v 311k. The market opened two points above yesterday’s SPX 1987 close, and then hit 1992 by 10am. At 10am the Philly FED (28.0 v 23.9), Existing homes sales (5.15mn v 5.04mn), and Leading indicators (+0.9% v +0.3%)were all reported higher. The market pulled back to SPX 1987 just past 10am, and then started drifting higher. Just before 3:30 the SPX hit 1995, then dipped to 1992 to end the day.
For the day the SPX/DOW were +0.30%, and the NDX/NAZ were +0.15%. Bonds gained 3 ticks, Crude added 55 cents, Gold dropped $13, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: a speech from FED chair Yellen at 10am, then a speech from ECB president Draghi at 12:30.
The market opened within two points of the SPX 1991 all time high, and by 10am it made a new high. After a 5 point pullback just past 10am, the market continued to set new records. Last friday, around noon, the market made a significant low at SPX 1942 – which we labeled Minute wave ii of Minor 3. Since then the market has risen over 50 points without one meaningful pullback. This rally certainly looks like Minute iii of Minor 3. The count posted remains unchanged.
Short term support is now at SPX 1991 and the 1973 pivot, with resistance at the 2019 and 2070 pivots. Short term momentum remains overbought, which it has been for most of the week. The short term OEW charts remain positive from 1950, with the reversal level now SPX 1988. Best to your Jackson Hole trading!
MEDIUM TERM: uptrend
LONG TERM: bull market