SHORT TERM: market drifts higher, DOW +33
Overnight the Asian markets lost 0.2%. Europe opened higher but finished mixed. US index futures were higher overnight, and at 8:15 the ADP index was reported lower: 208k v 230k. The market opened two points above yesterday’s SPX 2067 close, dipped back to 2067, then started to drift higher. At 10am ISM services were reported higher: 59.3 v 57.1. At 11am the SPX hit 2073, pulled back to 2069 by 12:30, and then moved higher. At 2pm the FED released its beige book, and FED governor Brainard’s speech was released: http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201412.htm, http://www.federalreserve.gov/newsevents/speech/brainard20141203a.htm. Around 3:30 the SPX hit 2076, its all time high, and then dipped to 2074 to end the day.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were +0.25%. Bonds lost 2 ticks, Crude added 50 cents, Gold gained $12, and the USD was higher. Medium term support rises to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: the ECB meets, then weekly Jobless claims at 8:30.
The market opened higher today, took out the previous day’s highs like yesterday, and continued higher with not much more than a 4 point pullback. The market has now rallied 26 points from Monday’s SPX 2050 low. This continues to suggest an extending Minor wave 5 is underway. Also of note, the DOW is in new high territory extending this five year bull market into its 69th month. This remains the third longest bull market in modern history. There are still several potential waves formations for Minor wave 5. So far it has unfolded, from the SPX 2030 Minor 4 low: 2056-2040-2076-2050-2076. Overhead resistance, should it clear the 2070 pivot, is in the 2078-2084 zone, then the 2085 pivot. Short term support remains at the SPX 2050 and SPX 2040 levels. Short term momentum is quite overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market