SHORT TERM: Q3 GDP beat, DOW -3
Overnight the Asian markets lost 0.2%. European markets opened higher and gained 0.4%. US index futures were higher overnight just before a series of economic reports. At 8:30 Q3 GDP was reported higher: +3.9% v +3.5%. At 9am Case-Shiller was reported lower: +4.9% v +5.6%, and FHFA housing prices were reported flat. The market opened at SPX 2072, a new high, ticked up to 2074 and then began to pullback. Not much of a reaction to the Q3 news. At 10am Consumer confidence was reported lower: 88.7 v 94.5. The pullback continued until 11:30 when the SPX hit 2065. Then the market went into another one of its opening range (2065-2074) trading ranges. Heading into the close the SPX hit 2067 and closed there.
For the day the SPX/DOW were -0.05%, and the NDX/NAZ were +0.05%. Bonds gained 11 ticks, Crude lost $1.95, 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: weekly Jobless claims, Durable goods, Personal income/spending and PCE prices all at 8:30. Then the Chicago PMI at 9:45, and Consumer sentiment, New/Pending home sales at 10am. Quite interesting, considering most will likely be travelling for the Thanksgiving weekend.
The market opened at a new high today, ticked higher, pulled back, and then went into a trading range. Thus far it has been a fairly quiet week. We continue to count five Minor waves up from the downtrend low at SPX 1821: 1898-1878-2046-2030-2074 so far. The Minor 5th wave has divided into three Minute waves: 2056-2040-2074 so far. While we did get a short term negative divergence at this morning’s SPX 2074 high, and a pullback. Thus far the pullback is not sufficient to suggest Minute wave four is underway. That would require a further drop near SPX 2060. Today’s low SPX 2065. Short term support remains at the important SPX 2040 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum ended the day around neutral. Best to your pre-holiday trading, and Happy Thanksgiving!
MEDIUM TERM: uptrend
LONG TERM: bull market