SHORT TERM: gap up and go, DOW +188
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 1.0%. US index futures were higher overnight. At 8:30 Durable goods orders were reported lower: -1.3% v -18.4%, and at 9am Case-Shiller was reported lower: +5.6% v +6.7%. The market gapped up at the open to SPX 1969 and continued to rally. At 10am Consumer sentiment was reported higher: 94.5 v 86.0. At 11:30 the SPX hit 1975, pulled back to 1970 by 12:30, then moved higher again. Heading into the close the SPX hit 1985 and closed there.
For the day the SPX/DOW were +1.15%, and the NDX/NAZ were +1.60%. Bonds lost 8 ticks, Crude added 25 cents, Gold rose $1, and the USD was lower. Medium term support rises to the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: the FOMC statement at 2pm.
The market gapped up at the open today, above yesterday’s high. It then rallied to the OEW 1973 pivot, pulled back, and then exceeded the +/- 7 point pivot range when it reached 1981. This rally has now extended somewhat beyond what was expected. However, we continue to see only three waves from the SPX 1821 low. Should it turn into five waves then we would consider adjusting the Primary III count. Also of note. We posted yesterday that the entire, now nine day rally, has produced higher highs/lows every day. The one exception was yesterday’s 1965 high, equaling Friday’s high. When this changes the trend may change as well. Short term support is at the 1973 and 1956 pivots, with resistance now at SPX 1986 and SPX 2000. Short term momentum is extremely overbought with a negative divergence. FOMC day tomorrow, which are often volatile, best to your trading!
MEDIUM TERM: Major B uptrend continues
LONG TERM: bull market