SHORT TERM: a day of clarity, DOW +41
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.4% as well. US index futures bounced around overnight, and at 8:30 weekly Jobless claims were reported higher: 290k v 278k. The market opened three points above yesterday’s SPX 2038 close, and continued higher. At 11am the SPX hit a new high at 2046, and then started to pullback. The pullback continued until 1:30, when the SPX hit 2030. Then the market rallied to SPX 2041 by 3:30 before closing at 2039.
For the day the SPX/DOW were +0.15%, and the NDX/NAZ were +0.25%. Bonds gained 4 ticks, Crude lost $2.55, Gold added $2, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Retail sales, Export/Import prices at 8:30, Consumer sentiment and Business inventories at 10am. Then a speech by FED governor Powell at 4pm.
The market opened higher today, made a new high at SPX 2046 in the morning, then pulled back to 2030 in the afternoon. While the pullback was only 16 points it cleared up the count on our short term charts. As we have noted for some time, it has been a bit difficult to quantify a count within this uptrend. We can now count three waves up from the SPX 1821 low to 2046. These three waves either conclude a Major wave B uptrend, or are three Minor waves of an Intermediate wave v uptrend. Should the market make new highs the extending Primary III becomes the main count. If not, the ongoing Primary IV is the main count. Last night we posted the extending Primary III count on the NDX charts. The NAZ continues to display the ongoing Primary IV. Short term support remains at the 2019 pivot and SPX 2000, with resistance at SPX 2049 and the 2070 pivot. Short term momentum declined to oversold during today’s pullback, and ended the day just above neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market