SHORT TERM: gap up then rally, DOW +167
Overnight the Asian markets lost 0.2%. Europe opened lower but gained 0.4%. US index futures were higher overnight, and at 8:30 Q2 GDP came in as expected: +4.6% v +4.0%. The market gapped up at the open to SPX 1971 and continued to rally. The market had closed at SPX 1966 yesterday. At 10am the market hit 1976, Consumer sentiment was reported flat at 84.6%, and the market began to pullback. At 11:30 the SPX hit 1968 and then tried to rally again. The rally continued into the afternoon when the SPX hit 1986 around 2:30. A pullback to SPX 1981 followed, then the market bounced into a 1983 close.
For the day the SPX/DOW were +0.95%, and the NDX/NAZ were +1.10%. Bonds lost 9 ticks, Crude gained 95 cents, Gold fell $3, and the USD was again higher. Medium term support rises to the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Today the WLEI was reported lower: 52.0% v 52.1%.
Volatility continues. The market gapped up at the open today for the first time since last Friday. Pulled back to within two points of the opening gap, then rallied strongly for the rest of the day. Today’s action makes it five triple digit daily swings in the DOW this week. The rally looked impressive, and so did Wednesday’s rally to SPX 2000. Lots to discuss in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend in jeopardy
LONG TERM: bull market