SHORT TERM: rally continues, DOW +128
Overnight the Asian markets gained 0.6%. Europe opened lower and lost 0.6%. US index futures were lower overnight, but rebounded, as the market opened two points above yesterday’s SPX 1951 close. In the opening minutes the market rallied to SPX 1958, then pulled back to 1946 by 10am. At 10am New home sales were reported lower: 467k v 504k. The market then turned around and rallied to SPX 1963 by 12:30. After a pullback to SPX 1955 the market moved even higher. Heading into the close the SPX hit 1965 and closed there.
For the day the SPX/DOW were +0.70%, and the NDX/NAZ were +0.70%. Bonds gained 1 tick, Crude lost 75 cents, Gold slipped $2, and the USD was lower. Medium term support rises to the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Today the WLEI reported its first contraction since mid-2012: 49.9% v 51.6%.
The market opened higher today, dipped, and then rallied above yesterday’s SPX 1962 high. We can now count a seven wave advance, if SPX 1965 was the high, from the low at 1878. The advance from SPX 1821-1898 was also seven waves. This suggests, this entire SPX 1821-1965+ rally may be all of Major wave B. More on this in the weekend update. Short term support rises the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Short term momentum continues to display negative divergences as the market moves higher. Best to your weekend!
MEDIUM TERM: Major B uptrend probably underway
LONG TERM: bull market