SHORT TERM: another gap up and go, DOW +217
Overnight the Asian markets finished mixed. Europe opened lower but gained 0.9%. US index futures were much higher overnight. At 8:30 weekly Jobless claims were reported higher: 283k v 264k, at 9am the FHFA was reported higher: +0.5% v +0.1%. The market gapped up at the open to SPX 1943 and continued to rally. The SPX had closed at 1927 yesterday. After hitting yesterday’s SPX 1949 high in the opening minutes the market pulled back to 1944 by 10am. At 10am Leading indicators were reported higher: +0.8% v +0.2%. After that the market rallied to SPX 1958 just before 11am, pulled back to 1952 by 1pm, then rallied to 1962 by 2:30. After that the market started to pullback. Just after 3pm the SPX hit 1949, bounced to 1955 by 3:30, hit 1948 just before a 1951 close.
For the day the SPX/DOW were +1.30%, and the NDX/NAZ were +1.60%. Bonds lost 13 ticks, Crude rallied $1.45, Gold dropped $8, and the USD was higher. Medium term support rises to the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: New home sales at 10am.
Another gap up and go open today. With the market holding the OEW 1929 pivot during yesterday’s pullback. It stormed ahead overnight, rallying right back to the 1956 pivot range again while setting up the negative divergence we mentioned yesterday. If the market is about to enter Int. wave B, it should be underway now. If not, and we are currently observing all of Major wave B. The market could rally to the targeted OEW 1973 pivot range next. This market has certainly been wild, as the DOW has been moving triple digits nearly every day for a couple of weeks. Best to your Friday trading!
MEDIUM TERM: Major B uptrend probably underway
LONG TERM: bull market