SHORT TERM: new bull market highs, DOW +40
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 1.0%. US index futures were lower overnight, but rose heading into the open, and at 8:30 the PPI was reported higher: +0.2% v -0.1%. The market opened two points above yesterday’s SPX 2042 close and continued higher. At 10am the NAHB was reported higher: 58 v 54. Just past 3pm the SPX hit 2056, then pulled back to close at 2052.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.65%. Bonds gained 5 ticks, Crude lost $1.35, Gold rose $10, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Last night the FED released today’s testimony: http://www.federalreserve.gov/newsevents/testimony/sullivan20141118a.htm. Tomorrow: Housing starts and Building permits at 8:30, then the FOMC minutes at 2pm.
The market opened slightly higher today, then cleared the recent high at SPX 2046. As noted in the weekend report, this new high further suggests an extending Primary III scenario is underway. We can now count five waves up from the SPX 1821 low: 1898-1878-2046-2030-2056 so far. This further suggests this uptrend is Int. wave v of Major 3 of Primary III, and not Major B of Primary IV. We updated the SPX hourly chart and the daily chart remained unchanged. Next, there is a solid cluster of Fibonacci resistance between the 2070 and 2085 pivots. Technically, we are starting to see a negative divergence developing in the NDX/NAZ daily charts. The SPX/DOW daily charts remain extremely overbought. Short term support is now at SPX 2049 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum was extremely overbought before the afternoon pullback. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market