SHORT TERM: marginal new highs, DOW +59
Overnight the Asian markets gained 0.2%. Europe opened higher and rallied 1.9%. US index futures were higher overnight, and at 8:30 monthly Payrolls were reported higher than expected: +321k v +214k, plus the Trade deficit was reported slightly larger: -$43.4bn v -$40.0bn. The market opened two points above yesterday’s SPX 2072 close. It then rallied to yesterday’s high at SPX 2077, pulled back to yesterday’s close, then rallied to a new high at 2079 by noon. After that it pulled back for the rest of the day. At 10am Factory orders were reported lower: -0.7% v -0.6%. Then at 3pm Consumer credit was reported lower: $13.2bn v $15.9bn. In the last hour of trading the SPX hit 2071, then spiked to end the week at 2075.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were mixed. Bonds lost 20 ticks, Crude dropped $1.05, Gold slid $14, and the USD rallied. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Today the WLEI was reported lower: 47.6% v 47.7%.
The market opened higher today, made a new high at SPX 2079, then pulled back into the close. The wave pattern from the Minor 4 SPX 2030 low, continues to remain choppy and has been forming a rising wedge. This could continue into next week as the diagonal triangle continues to form. These markets have displayed some exceptionally long ones in the past year. Short term support remains at the 2070 pivot and the key SPX 2050 level, with resistance at the 2085 and 2131 pivots. Short term momentum ended the week at neutral after posting another negative divergence. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market